Forex news and economic data headlines for the European session 10 May 2016
News:
- Japan's Aso: Financial markets, not the government, decide appropriate FX levels
- Japan's Aso: Unsure whether FX will be on G7 meeting agenda
- Japan's Hamada said they would have to intervene if USDJPY fell to 90-95
- Japan's national debt rises to JPY 1,049.37 trln in Q1
- Japan's Post Bank sees USDJPY at 108.00 as "fair value"
- USDJPY finally chews through the 109.00 offers
- USDJPY churns through the tech on its way to 110
- Fed's Dudley says US dollar should remain key reserve currency if US keeps "house in order"
- Brexit leavers increase at the British Chamber of Commerce
- UK's NIESR expects GBP to fall around 20% if Leave vote prevails
- EU's Breidthardt says Eurogroup made important progress on Greece
- Qatar: The oil market is advancing and on the way to a recovery - Livesquawk
- Rosneft's Sechin says OPEC effectively is extinct as a united organisation
- China's Ministry of Commerce is bearish commodities
- How's deflation doing in Greece?
- Moody's expect Russian economy to contract by 1.5% in 2016
- IMF see 2016 Singapore GDP +1.8%
- Options expiries 10 am NY cut today 10 May
- Nikkei 225 closes up +2.15% at 16,565.19
Data:
- German industrial production March mm SA -1.3% vs -0.2% exp
- Germany trade balance +EUR 26.0bln vs +EUR 20.6bln exp
- March 2016 UK visible trade balance -11.204bn vs -11.300bn exp
- Bank of France business sentiment index April 99 vs 100 exp
- France industrial production March mm -0.3% vs +0.7% exp
- Italy industrial production March mm 0.0% vs +0.2% exp
- US NFIB small business optimism April 93.6 vs 93.0 exp
- Switzerland unemployment rate April +3.5% vs +3.5% exp
It's been all about the yen again.
USDJPY had moved up in Asia playing leapfrog with the Nikkei but strong offers at 109.00 had capped the rally until finally breached in early European trading and we've been up to 109.27 but run into more offers.
The USD demand here has capped other pairs but with yen-pair support the moves lower in core pairs has been relatively muted. GBPUSD had an early look below 1.4400 but rallied on a combo of GBPJPY demand/EURGBP supply. A decent rally ensued to 1.4466 before it too ran into sellers and retreated to 1.4420.
EURUSD enjoyed some early EURJPY support but failed to hold onto 1.1400 and we're now seeing renewed selling pressure to post 1.1362. AUDUSD similarly rallied to 0.7373 on AUDJPY demand but has since fallen back to 0.7338. USDCHF has remained underpinned on USD and EURCHF demand while USDCAD has rallied to test good resistance/offer around 1.2980 after initially dipping on firmer oil prices.
Not a lot on the US/CAD data front to come but Jolts job openings and API weekly crude oil stocks will catch the eye.
Meanwhile it's all about the yen. Again.
