Forex headlines for the European morning session 28 Nov 2016
News:
- Another legal challenge regarding Brexit on its way
- Month-end EURGBP demand gives the pound another kicking
- A double dose of Draghi awaits from Brussels today
- OECD hikes 2017 global GDP forecast to 3.3% vs 3.2% prior
- Azerbaijan's oil minister won't be coming to the OPEC meeting
- There's a 60% chance of an OPEC deal being done says JPM
- Saudi's offer to cut production by 4.5% if Iran freezes at 3.8mbpd - Livesquawk
- USD finding its feet against all bar the yen
- Heads up if you're waiting for the Eurozone economic sentiment data
- Moody's sees Spanish 2017 GDP growing by 2%
- SNB total sight deposits w-e 25 Nov CHF 527.6bln vs 524.7bln prev
- More FX option expiries of note this week
- Option expiries for the 10 am NY cut today 28 Nov
- Nikkei 225 closes down -0.13% at 18,356.89
Data:
- China services trade deficit Oct USD 20.9bln
- Eurozone M3 money supply Oct yy 4.4% vs 5.0% expected
- Italy consumer confidence Nov 107.9 vs 107.6 exp
After an Asian session of US $ selling we've seen many of those moves reversed in Europe as month-end flows begin to play out.
USDJPY had fallen in Asia to test support around 111.35 with Japanese corps bringing some yen home for month-end and began the European session by testing back above 112.00 only to fail initially.
That helped push back EURUSD higher above 1.0665 after 1.0686 Asian highs.Further support came from the anticipated EURGBP demand from the Bundesbank and that surged to 0.8566 from 0.8525. GBPUSD in turn got shoved lower by that and we were soon triggering stops through 1.2480 having failed to hold gains above 1.2500.
With USDJPY holding above 111.85 USD buyers elsewhere were encouraged to jump on the momentum and that's meant EURUSD following GBPUSD down to 1.0590 and 1.2387 as I type with EURGBP retreating to 0.8545
AUDUSD had an early look at 0.7500 but it too ran out of steam as did NZDUSD at 0.7100 an have posted 0.7449 and 0.7052 lows so far.
USDCHF was on the back foot from the Asian session but as EURUSD fell and USD demand returned we've seen 1.0155 posted in a straight line from 1.0105
Equities began on the back foot and remained that way while oil has rallied from Asian and European lows on positive output news from Iraq and that's played out on USDCAD keeping the range contained.
No data of note today to follow but we do have ECB president testifying twice to the European parliament.
