Forex trading news and economic data headlines for the European session 27June 2016
News:
- Osborne says the UK is ready to confront the future
- More from Osborne: No emergency Budget at this time
- UBS looking for BOE to cut rates and FOMC to delay their hike
- Soros wasn't short of GBP into Brexit
- Pound hits post-Brexit lows in another session under the cosh
- JP Morgan say a second Brexit referendum is unlikely
- More knives come out for UK interest rates while Carney mulls hiding from ECB summit
- There can be no informal talks before Britain submits article 50 says Germany
- Financial markets are concerned that EU is no longer governable says Merkel
- Yellen pulls out of ECB summit - Livesquawk
- Junker will not resign - EU Commission will discuss Brexit at 13.00 GMT
- Japan considering a further JPY 10 trln stimulus package
- SNB sight deposits CHF 501.231bln w-e 24 June vs CHF 496.354 bln prev
- China to moderately expand fiscal deficit
- Four candidates nominated to be next RBI governor
- PM Key says NZ economy unlikely to suffer from Brexit decision
- Option expiries 10 am NY cut today 27 June
- Nikkei 225 closes up +2.39% at 15,309.21
Data:
- China May services trade deficit USD 19.1bln
- Eurozone M3 money supply May yy +4.9% vs +4.85 exp
Any hopes that UK fin min Osborne and GBP bulls had that his " Don't worry we've got it all under control" speech might provide some support lasted only a matter of minutes and 75 pips. Then it was time for normal business to resume and down came the pound to register new post-Brexit lows.
The pound had started on the back foot after gapping lower in Asia but was relatively calm waiting to see if Osborne would offer anything of note. No surprises, no emergency budget but no resignation so we saw a belated relief rally in GBP pairs which saw GBPUSD test 1.3475 res/offers from 1.3402 and EURGBP fall to test 0.8200 from 0.8230. Overall Brexit remains to leave the pound in a real mess ( pun intended) with UK bank stocks being trashed again.
Elsewhere we've seen EURUSD in retreat to 1.0990 from 1.1060 with yen demand driving USDJPY lower again to 1.01.65 after talk of further BOJ stimulus had seen a rally into 102.20.
AUDUSD and NZDUSD both softer on the yen-pair selling while USDCAD has climbed to 1.3088 after holding initial losses to 1.3000
