Forex news and trading headlines 4 Jan 2016
News:
- UK's Rogers tells colleagues to challenge "muddled thinking" over Brexit
- France's Le Pen wants to return to an ECU structure
- Japan's Abe says economy will be top priority this year
- USDJPY breaks down through 117.50 to post new session lows
- USDCAD continues to lose ground
- India's December services PMI contracts again as cash shortage hits orders
- Option expiries for the 10 am NY cut today 4 Jan
- Nikkei 225 closes up +2.51% at 19,594.16
Data:
- December 2016 Eurozone CPI flash 1.1% vs 1.0% exp y/y
- Italy HICP November flash mm +0.4% vs +0.2% exp
- December 2016 UK Markit CIPS construction PMI 54.2 vs 52.8 exp
- UK mortgage approvals Nov 67.5k vs 68.5k exp
- US MBA mortgage applications 0.1% vs 2.5% prior
- Eurozone Markit services Dec PMI final 53.7 vs 53.1 exp
- Germany Markit/BME services Dec PMI final 54.3 vs 53.8 exp
- France Markit services Dec PMI 52.9 vs 52.6 exp
- Italy Markit services PMI Dec 52.3 vs 52.6 expected
- Spain Markit services PMI Dec 55.0 vs 54.7 expected
- Spain unemployment change Dec -86.8k vs -50k expected
- France December consumer confidence 99 as expected
A data filled session but one that's had more than one eye on the FOMC Minutes out at 19.00 GMT today.
USDJPY had rallied through 118.00 in Asia helped by a stronger Nikkei ( Catch 22 ofc though as usual) but we failed at 118.19 ahead of some decent offers/res again and down we came on a slippery slide to 117.70. We weren't done there though despite some stubborn support and the next sell wave took the pair through 117.50 which had held in Asia. Fresh buyers into 117.20-30 have helped a rally to 117.64 since
EURUSD has enjoyed a good session but failed into 1.0450 and has large option expiry interest at 1.0400 in play too. Similarly EURGBP at 0.8500 and we've seen good two-way in a 0.8480-0.8515 range.
That lively business in EURGBP has played out on GBPUSD again which also has decent option expiry interest at 1.2250 again. Better UK PMI data had a muted benefit with consumer credit data again a worry and offers/res into 1.2300 has prevailed so far.
USDCAD has had a steady slide lower to 1.3341 from 1.3440 on a combo of steady oil price and soggy USD sentiment. AUDUSD enjoyed an early run up to 0.7280 but backed off to trawl around 0.7250 for duration.
Busy times and great opportunities for intra-day traders but with focus on the main event later.
