Forex news and economic headlines 19 April 2016
News:
- Germany's ZEW says better Chinese data lifted investor expectations
- ECB report highlights significant challenges for Spain
- ECB lending survey highlights continued increase in loan demand across all categories
- Greece expecting a larger 2015 primary surplus than previously projected
- Italy's Padoan says domestic economic growth is consolidating
- Cable pushes higher as yen sellers return
- NZDUSD posts 2016 highs as EURNZD gets kicked lower
- Option expiries 10am NY cut today 19 April
Data:
- Germany ZEW April survey current situation 47.7 vs 50.8 exp
- ECB Eurozone current account Feb SA €19.0bln vs +€27.5bln prev
- Italy current account balance Feb +€1.377bln vs -1.068bln prev
- Japan nationwide department store sales March yy -2.9% vs +0.2% previously
Lively times again as oil and equities both kicked higher to set the tone for the remainder of the session and providing some good two-way opportunities.
USDJPY began the day on the back foot ignoring the late Nikkei rally into the close and that gave a clue to US$ sellers as the pair retreated into 108.80 support. GBPUSD has a 30 pip look upstairs to 1.4345 but good offers sent the price tumbling back to 1.4285 as GBPJPY sellers added to the downward momentum.
Cue a turn around in oil prices though and equities adding to early gains and it was all change.
USDJPY pushed up back through Asian highs of 109.22 to test strong exporter sell interest at 109.50. Yen pairs followed suit and it was GBPJPY that led the way to post 157.37 reversing cable losses to break up through 1.4350 offers and trigger stops to 1.4378 ahead of even stronger sell interest into 1.4400.With the DAX posting gains of 2%+ it was the euro that found itself lagging behind and the push down on EURGBP from 0.7910 to 0.7882 added to the GBP demand.
EURUSD has still managed to hold its own though albeit pinged around 1.1330 in the cross play crossfire with highs of 1.1344.
USDCAD has had the expected move lower on higher oil prices and has fallen from 1.2780 to 1.2705 while AUDUSD took out the 0.7800 barrier option early in the session but done little since. NZDUSD posted 2016 highs 0.7036 from 0.6990 and also benefitting from AUDNZD supply down to 1.1073. GDT auction results awaited
Little in the form of data today but we do have Carney and Poloz up to the mic and that may yet add more colour to the picture.
