Forex news and trading headlines 16 Jan 2016
US markets closed for Martin Luther King Day
News:
- UK government does not comment on currency movements - PM May's spokeswoman
- UK May's spokeswoman says "hard Brexit" talk is speculation
- A grey day for the pound as May talks tough about Brexit
- Bundesbank says "No Comment" to reports of buying bonds below depo rate
- China's Xi says 2016 GDP is expected to be +6.7%
- Nervous times if you're a stats worker in China
- Saudi oil minister says it's not necessary to extend OPEC deal
- ECB's Villeroy repeats that inflation concerns are "greatly exaggerated"
- We are against a race to the bottom say the Germans
- Germany's VDMA is worried about the Trump effect
- BOJ Nagoya branch manager says many firms see weak yen as positive
- Turkey's central bank has other strong weapons apart from interest rates
- Allianz's El-Erian says USD strength is main risk to at least 3 rate hikes from the Fed
- Nikkei 225 closes down -1.0% at 19,095.24
Data:
- November 2016 Eurozone trade balance 22.7bn vs 20.8bn exp SA
- China non-financial ODI down -39.4% in December yy to USD 8.41bln
- Final Italian yy December HICP springs no surprises at 0.5% vs 0.5% exp
- Japan December machine tool orders yy flash +4.4% vs -5.6% prev
Lively start to the week with the pound understandably in the spotlight after it's gap lower in Asia.
The pound had an early look below 1.2000 again after opening down here in Asia and bouncing back into 1.2050 but that sell-off also found willing buyers. Denials from UK PM May's office that her speech tomorrow will be of the "hard Brexit" variety gave some immediate respite for GBPUSD back to 1.2080 sending EURGBP down in equally rapid time 0.8777 and then 0.8764 versus Asian highs of 0.8866
Pound sellers though have also been quick to jump back in and we've seen good two-way business inc GBPJPY with early selling sending USDJPY to test 113.75-80 only to find fresh buyers.
EURUSD had found itself in retreat from 1.0630 to 1.0580 support as general USD demand prevailed with USDJPY rallying to 114.40 and USDCHF to 1.0137 from 1.0085.
AUDUSD, NZDUSD both traded lower from Asian openings but found support at 0.7460 and 0.7076 from while USDCAD has been pinned between 1.3125-55.
Oil, equities and oil have all been on the back foot for the most part.
US desks closed today for Martin Luther King Day but we do have the spectre of BOE gov Carney hanging over proceedings at 18.30 GMT
