Forex news and trading headlines 3 Jan 2016
News:
- ICYMI: Questions that the UK's TSC enquiry should be asking the Old Lady - More from John Hearn
- EURUSD breaks 1.0400
- Pound feels some PMI pleasure but jury's still out
- USDJPY closes in on Dec high
- China's PBOC issued yuan 733bln via MLF in December
- Option expiries for the 10 am NY cut today 3 Jan
Data:
- December 2016 UK Markit/CIPS manufacturing PMI 56.1 vs 53.3 exp
- Germany unemployment change Dec -17k vs -5k exp
- France December CPI flash mm +0.3% vs +0.5% exp
- Saxony Dec CPI mm +0.9% vs 0.0% prev
- December 2016 German Baden Wuerttemberg CPI 1.6% vs 0.8% prior y/y
- North Rhine Westphalia December CPI mm +0.9% vs 0.0% prev
- Bavaria December CPI mm +0.7% vs 0.0% prev
- Switzerland mftg PMI Dec 56.0 as expected
- Australia commodity index SDR yy Dec 45.5% vs 32.1% prev
It's been a session long on data/short of rhetoric and a case of 2017 bringing more USD demand with the euro bearing the brunt of a general attack.
The euro came under some early pressure not helped by softer French CPI data but tempered by stronger German regional data but inflation wasn't the main driver. That honour went to the greenback which had begun the year in good voice.
EURUSD had failed above 1.0480 again in Asia and early Europe and after wiping its feet at 1.0460 we were soon testing 1.0420 which held but the bounce was unconvincing and the pair didn't hang around for long before dipping and breaking down through 1.0400.
More bids/support at 1.0380 is holding so far but rallies are once again weak with EURGBP also very much on the back foot at 0.8450 after failing above 0.8530 but the decline wasn't one way until 0.8480 support gave way. That retreat has given support to GBPUSD after falling to test 1.2250 with option interest down there lending to the demand.
USDJPY meanwhile was chewing its way through 118.00 offers/res to post 118.35 with USDCHF needing little excuse to follow to break up through 1.0300 with EURCHF clinging to 1.0700.
AUDUSD had rallied in Asia on stronger Chinese data but ran out of steam at 0.7236 and returned to test 0.7200 while USDCAD found support into 1.3400 after an early oil-led dip but since seen the reverse moves play out.
US ISM data to throw into the mix as we wait to see if NA desks have anything new to add to this simmering pot.
