Forex news and economic trading headlines 15 July 2016
We remember those who lost their lives in last night's tragic terrorist attack in Nice
News:
- BOE's Haldane says monetary policy measures likely to be needed
- Markit to issue a special one-off UK PMI flash next week
- Germany says it's reasonable to have demands of its own over Brexit
- Chinese commercial banks NPL ratio end-June 1.81% vs 1.75% prev
- ECB's Angeloni says Italian banks' non-performing loans can be managed but shouldn't be underestimated
- China's Li says downward economic pressure remains
- Japan and China agree co-operation to thwart Brexit impact
- USDJPY in sharp reversal into 105.50
- Cable in retreat after failing into 1.3500 again
- Option expiries 10 am NY cut today 15 July
- Nikkei 225 closes up +0.68% at 16,497.85
Data:
- Eurozone June CPI final mm +0.2% vs +0.2% exp
- Eurozone May trade balance SA +€24.5bln vs +€25.0bln exp
- UK construction output May mm SA -2.1% vs -1.2% exp
- Italy May total trade balance +€5.03bln vs +€4.511bln prev
It's been another session with the pound and yen once again stealing the limelight.
It began with a strong buying of safe-haven yen in thin liquidity following the terrorist attack in Nice which killed 84 people including children. GBPJPY was once again a prime mover in the fx markets and that saw GBPUSD fall to 1.3358 from 1.3430 and USDJPY to 105.42 from 106.20 in rapid fashion. Large option expiries at 105.50 in play. Other core pairs also found themselves under pressure but not to the same extent.
The pound staged a decent rally into 1.3450 and USDJPY to 106.14 but both pairs have fallen back once more in a rollercoaster ride of a session. Comments by BOE's Haldane that "muscular" and "prompt" mon pol measures are needed sent GBP pairs crashing again with GBPUSD leading the way from 1.3424 to 1.3341 before running into fresh support.
AUDUSD had enjoyed a sharp rally in Asia on the stronger Chinese data but found itself in retreat as AUDJPY sellers prevailed. Similarly NZDUSD also found itself capped at 0.7200 while USDCAD has found itself on the back foot as oil firms.
USDCHF has dipped as EURUSD remains underpinned but both being capped euro selling on the crosses
Carney is due to speak at a trade gig in Toronto at 12.00 GMT and there's a raft of US data to end the week and keep things bubbling.
