Forex news and trading headlines 24 Jan 2016
News:
- UK Supreme Court rules against government on Article 50
- UK Supreme court: Votes 8-3 that government can't trigger article 50 without parliament approval
- UK's Davis to set out details of government's response to court ruling at 12.30 GMT
- Sturgeon says it's becoming "ever clearer" that Scotland must take future into own hands
- UK govt spokesman says Supreme Court verdict does not change Article 50 time-table
- Pound gives up post-verdict gains
- Japan's Abe says he won't go back on plan to raise sales tax to 10%
- Turkey's central bank leaves benchmark repo rate at 8%, raises o/n lending rate to 9.25%
- PBOC confirms it has raised rates for 6/12 month MLF issues
- Moody's warns that rising debt levels and interest rates will erode US' capacity to absorb shocks
- Greek government say they are working to close bailout review
- Option expiries for the 10 am NY cut today 24 Jan
- Nikkei 225 closes down -0.55% at 18,787.99
Data:
- Eurozone Markit Jan mftg PMI flash 55.1 vs 54.8 exp
- Germany Markit Jan mftg PMI flash 56.5 vs 55.4 exp
- France Markit Jan mftg PMI flash 53.4 vs 53.4 exp
- UK public sector borrowing falls in December
It was always going to be about the UK Supreme Court ruling this morning and whilst the verdict was widely expected we still got some great intra-day opportunity.
Late Asian trading had seen a few USD buyers return and that meant USDJPY back up through 113.00 and testing 113.15-20 . GBPUSD found itself in steady retreat from 1.2548 highs to post 1.2463 as we waited on the court ruling.
As that time approached we saw a spike from 1.2480 to 1.2515 and then 1.2534 as the verdict came out. A case of buy rumour/sell fact and with the news came a retreat to 1.2436 accelerated by part of the ruling enabling the govt not needing the consent of Scottish, Irish or Welsh parliaments. Pound pairs had a similar reaction across the board and have for the most part now been on the back foot.
The USD demand has seen USDJPY push on to 113.48 and EURUSD down to 1.0725 from 1.0760 but once again impacted by EURGBP and EURJPY cross flows.
Equities opened a tad firmer but produced ntg of note since while oil prices have been in retreat and that's also helped put a base under USDCAD rom 1.3230 but still finding 1.3300 a step too far for the moment.
AUDUSD fell back through 0.7600 in Asia and has been in steady retreat but finding support into 0.7550.
US housing data to come at
