Forex news and economic trading headlines 3 August 2016
News:
- Japanese PM Abe says he's not looking to extend term as LDP president
- Aso to remain finance minister in Abe's government re-shuffle
- Japan's Asakawa says FX market showing one-sided and speculative moves
- PBOC says they will fine tune policy in pre-emptive and timely way
- EURGBP demand helps cap cable again
- Option expiries 10 am NY cut today 3 August
- Nikkei closes down -1.88% at 16,083.11
Data:
- July 2016 UK Markit CIPS services PMI 47.4 vs 47.4 exp
- Eurozone Markit services PMI July final 52.9 vs 52.7 exp
- Germany Markit/BME services PMI July final 54.4 vs 54.6 exp
- Eurozone retail sales June mm 0.0% as expected
- France Markit services PMI July final 50.5 vs 50.3 exp
- Italy Markit/ADACI services PMI July 52.0 vs 51.0 exp
- Spain Markit services PMI July 54.1 vs 55.2 exp
- UK official reserves changes July USD 219m vs USD -1619m prev
It was a case of yen and pound once again hogging the headlines in a session that's provided some decent opportunity again for the intra-day trader.
USDJPY began on the back-foot as the Nikkei posted ever lower lows and we saw a drop to 100.75 before talk of a meeting between MOF,FSA and BOJ gave markets hope of something further to help weaken the yen. A quick bounce back above 101.10 was soon faded when it transpired that the meeting was a routine one and for general discussion/appraisal of on-going events.
Since then yen pairs have kicked around in relatively ordered fashion and it's been the pound that's stolen the limelight as UK PMIs lent support after the final readings sprang no nasty surprises. GBPUSD had been down to look at the 1.3285 support area again on early USD demand but was already clambering back up the ladder when the data sent it higher to post 1.3358 so far. EURGBP added to the momentum by falling down through decent support at 0.8400 to test the next layers of bids/support around 0.8385
EURUSD has been largely caught up in the cross play crossfire but generally on the back foot while USDCAD saw an early bounce off 1.3100 as oil weakened. The price actions have reversed now though with Brent climbing back up to $42.25 from $41.65 and WTI to $39.89 from $39.40.
AUDUSD has been mostly underpinned after a retreat through 0.7600 with large option expiry demand in play at 0.7540.
Focus turns to the BOE tomorrow but for today we have some US PMI and ISM data to factor in too.
Early wrap today as I have to head out to a meeting so I'll leave you in Ryan's more than capable hands and wish you a good session.
