Forex news and trading headlines 21 December 2016
News:
- UK firms see better growth but dark clouds of caution still remain
- Citi/YouGov poll sees UK inflation expectations rise
- Sweden's Riksbank leaves key repo rate at -0.5% but extends QE by SEK 30bln
- Italy to tack on €20bn in debt to cover banks
- ECB's Rimsevics says QE has failed to substantially boost the Eurozone economy
- SNB has the appropriate governance says government
- Option expiries for the 10 am NY cut today 21 Dec
- Nikkei 225 closes down -0.26% at 19,444.49
Data:
- November 2016 UK PSNB 12.210bn vs 11.300bn exp
- France November PPI mm +0.8% vs +0.9% prev
- Switzerland Q3 current account surplus CHF 21bln vs 23bln yy
It's been a largely contained session understandably as we approach the Xmas hols but we've still had some decent opportunities for those still up for it.
USDJPY began on the back foot around 117.50 having fallen in Asia from 118.07 to 117.43. Some general USD demand down there spread elsewhere and we saw GBPUSD and EURUSD, to name just two pairs, start to retreat from highs of 1.2384 and 1.0425 .
With USDJPY failing to rally too far it was clear we were seeing some yen demand again as equities drifted lower and with GBPJPY and EURJPY falling to 144.88 and 122.07 we saw core pairs capped and 1.2324 and 1.0389 lows.
Similarly AUDUSD fell to 0.7240 helped by AUDJPY and AUDNZD sales, a theme noted in Asia. USDCAD fell back to 133.56 led by firmer oil prices.,
Some USD selling again as I type and NA desks make an early statement with USDJPY falling through 117.40 support to test the next line at 117.20. That supply has seen GBPUSD up to 1.2385 and EURUSD 1.0430 with AUDUSD getting a lift to 0.7271.
US housing and oil inventory data to come and all to throw into the mix.
