Forex news and economic data headlines for the European session 19 May 2016
News:
- EgyptAir Flight MS804: French airport official says " It did not land. That's all we can say for the moment"
- Egyptian military deny a distress call was received from MS804
- Japan's Aso says G7 will discuss macroeconomic policy, structural reform
- BOJ's Kuroda says G7 faces various challenges it needs to deal with on global economy
- Germany's Schaeuble says there will not be another crisis over Greece
- Japan to use robots to add ¥30tn to economy by 2020
- Proud and perky pound after UK retail sales data
- EURGBP support helps cap cable
- USDJPY drops back through 110.00 but more demand nearby
- Euro left floundering as pound and dollar take off
- Option expiries 10 am NY cut today 19 May
- Nikkei 225 closes up +0.1% at 16,646.66
Data:
- April 2016 UK retail sales 1.3% vs 0.5% exp m/m
- March 2016 Eurozone construction output -0.9% vs -1.1% prior m/m
- France Q1 mainland unemployment change -3k vs -24k exp
- Japan machine tool orders April final yy -26.3% vs -26.4% prev
Another busy morning has seen the pound make further gains after stronger than expected UK retails while the yen found a few buyers again as risk-appetite diminished.
The missing EgyptAir plane has caused a few wobbles while the world learns to hear its cause and as yet terrorism has not been ruled out. USDJPY was enjoying some decent demand but as it moved into strong offers/res at 110.50 the sellers returned and indeed yen pairs in general all found themselves on the back foot.
The exception was GBPJPY that had its retreat rudely reversed by strong GBP gains after the UK retail sales data that also saw GBPUSD rally in rapid fashion from 1.4575 to 1.4663 sending EURGBP down to test 0.7650 support.
EURUSD has been entrenched in a 1.1200-30 range but mostly down in the lower half. Talk of barrier support in play to counter EURJPY and EURGBP-led supply. USDCAD had a look above 1.3100 as oil prices fell on the early USD demand but small corrections on both in the last hour or so.
USDCHF has swatted away any risk-off demand with EURCHF still remaining underpinned but failing to breach 1.1100 again and USDCHF unable to breach 0.9900.
AUDUSD has also been mostly on the back foot with a rally into 0.7225 quickly sold as AUDJPY fell from 79.55 to test 79.00. NZDUSD has also been in similar rear-guard action after failing to hold twice above 0.6760
US initial jobless claims and Philly Fed indices are the data risks with US Fed's Fischer and Dudley also on the menu.
