Forex news and economic data headlines for the European session 24 May 2016
News:
BOE:
- BOE's Carney : All Brexit work is governed by the BOE remit
- BOE MPC Annual Report: UK inflation likely to rise gradually through 2016
- BOE's Weale says Brexit would increase the risk of recession
- More from Carney: It's important I am straight with the British people
- BOE's Carney refutes he has been paid off by Goldman Sachs to promote Remain position
- More from Carney (2): Remain outcome scenario would see next move in rates likely to be up
- BOE's Carney says MPC view of inflation differs to that of UK Treasury
- BOE's Weale: Surprised that UK wage growth has not picked up over past 18 months
- Japan's Hagiuda says a snap election can not be ruled out
- Japan's Yamaguchi says Abe not thinking about dissolving Lower House "at all"
- Japan's Shibayama looking for a stronger message from G7 to spur global growth
- China's Li says reducing excess capacity is key task in supply side reform
- BSI Bank in Singapore shut down by MAS
- So what else is happening in the fickle world of forex?
- EURGBP leads the way as the pound perks up
- Option expiries 10 am cut today 24 May
- Nikkei 225 closes down -0.94% at 16,498.76
Data:
- Germany Q1 GDP final qq SA +0.7% vs +0.7% exp
- Germany ZEW May survey current conditions 53.1 vs 49.0 exp
- UK PSNBR April GBP 6.6bln vs GBP 5.8bln expected
- Switzerland trade balance April +CHF 2.504bln vs +CHF 3.14bln exp
- France manufacturing confidence May 104 as expected
- UK CBI retail reported sales May 7 vs 8 expected
It's been all about the pound this morning as BOE governor Carney led his team of trusties into battle with the parliamentary Treasury Select Committee.
Compelling viewing with the next result that GBP has been driven higher more on a relief rally than any particular comments suggesting that the market is caught short in fragile trading conditions.
GBPUSD was crawling around the overnight base at 1.4480 when a large EURGBP sell order went through at 0.7730 and we soon down below 0.7700 with GBPUSD rallying strongly to 1.4530. Extended gains to test 1.4550 as Carney's testimony got underway and EURGBP wiped its feet around 0.7680.
The next wave though eventually took out offers/res at 1.4600 to post 1.4623 and EURGBP support was chewed through to post 0.7644. Other GBP pairs saw similar gains with GBPJPY helping push USDJPY back up through 109.50 after surviving an early chomp down through 109.20.
Elsewhere EURUSD gave up on 1.1200 as the EURGBP selling drove the pair down to 1.1169. Strong corp demand at 1.1160 though has provided decent support to help a rally back through 1.1185. European equities have enjoyed a better morning after an opening wobble and that has helped keep the euro undermined. EURCHF failed to hold above 1.1100 again and drifted off toward 1.1080 support and also capping USDCHF.
USDCAD had an early rally to 1.3188 as oil prices wobbled again but we've seen a retreat into 1.3150 as oil recovered a little. AUDUSD has been on the back foot since the Asian zone comments from RBA gov Stevens and large 0.7200 option expiry interest but so far found support at 0.7150.
US Redbook, new home sales are data events coming up later and we'll see whether another ccy other than GBP steps up to steal the limelight.
