Forex news and economic headlines 6 April 2016
News:
- Japan's Suga repeats that they are monitoring markets closely
- Japan's Tachibana says the economy can "tolerate" USDJPY while over 100.00
- Have we seen a bottom put in now that 110.00 has survived?
- Russia looking to strengthen ties with OPEC but not join it
- Iran to reach 4m bpd oil output by March 2017 - Livesquawk
- RBA's Kent says global factors reinforce the message that inflation likely to stay low
- Preview: FOMC Minutes in focus so is anyone hawkish still ?
- Pound under pressure again as EURGBP posts new session highs
- Option expiries 10am NY cut today 6 April
Data:
- US MBA mortgage applications 2.7% vs -1.0% prior
- Germany Markit retail sales PMI March 54.1 vs 52.5 prev
- UK new car registrations March +5.3% vs +8.4% prev
It's not been a good session for the pound but there's a yearning for yen still.
With the Nikkei and European equities failing to find any joy we've seen more demand for the yen which has kept USDJPY pinned down near session lows around 110.30 with rallies quickly sold. Good demand into 110.00 though has meant the other core pairs have been driven lower notably GBPUSD which has tumbled again to now post 1.4067. Across a range of pairs the pound remains on the backfoot as Brexit concerns continue to undermine.
Euro demand has seen EURJPY hold above 125.00 and EURGBP rise to post 0.8067 surpassing the Sept 2014 0.8066 highs. EURUSD therefore continues to find funding currency support and has once gain held above the 1.1335 support lines.
USDCHF remains range bound on the cross play crossfire with EURCHF anchored around 1.0900. USDCAD has risen to 1.3188 on the CADJPY selling and shrugged off firmer oil prices.
AUDUSD and NZDUSD have also been on the back foot on the cross pair yen demand.
FOMC Minutes at 18.00 GMT casts a shadow and we may well see some position squaring as that witching hour arrives.
