Forex news headlines and economic data for the European session 8 June 2016
News:
- Clinton secures Democratic nomination for US President
- ECB's Draghi says international use of euro has fallen "slightly"
- ECB's Villeroy: Monetary policy isn't the only game in town
- More from Villeroy: ECB has a duty to protect price stability in both directions
- Calls for Brexit vote registration extension as thousands get locked out of website
- Moody's say Australian banks face increased risks from rising house prices
- Eurogroup expected to decide next week on unblocking funds to Greece
- Option expiries 10 am NY cut today 8 June
- Nikkei 225 closes up +0.93 % at 16,830.92
Data:
- April 2016 UK industrial production 2.0% vs 0.0% exp m/m
- Switzerland CPI May mm +0.1% vs +0.2% exp
- Bank of France business sentiment index May 97 vs 100 exp
- Japan economy watchers survey May current 43.0 vs 43.4 expected
A relatively quiet session after the fun and games of recent times but still opportunities to be had with the pound providing most of the action.
It was a quiet start with yen pair demand after better Chinese data inspired a bit of risk-on appetite. USDJPY clung on to 107.00 after falling in Asia to 106.72 and that spread to core demand elsewhere with EURUSD testing Asian highs of 1.1377
GBPUSD rallied too but failed again into 1.4560 and just prior to the UK production data we saw a sharp fall to test 1.4500 with EURGBP up through 0.7835 res triggering a few stops only to fail into the larger offers/res into 0.7850.
Cue the actual, better than expected, release and we saw a sharp cable rally to 1.4580 from 1.4525 with EURGBP once again testing 0.7800 demand only to give up those gains as market attention turned back to the Brexit uncertainty. In the last hour though we've seen further GBP demand return.
USDJPY had a rally of its own led by renewed yen-pair buying and posted 107.39 before retreating with good supply into 107.50 a step too far. USDCHF still looks soft on general USD and EURCHF supply.
USDCAD has been in steady decline as oil prices firm again and we've seen a rapid fall from 1.2720 to 1.2670 as I type. AUDUSD has enjoyed good demand on commodity prices and in the wake of better than expected Chinese data which has seen NZDUSD claw its way back above 0.7000.
Canadian housing and US Jolts jobs data coming up to throw into this fragile mix.
