Forex trading news and economic data headlines 4 Nov 2016
News:
- Preview: What 10 major banks are expecting from the NFP data today
- More from Broadbent: Inflation was always going to rise
- BOE's Broadbent says UK forecasting environment more unusual than normal
- Theresa May on the hop as Conservative member resigns
- Bundesbank's Dombret says low rate environment is appropriate at current time
- Here's how USDJPY could react over Non-farm payrolls
- Ex-Saudi oil minister isn't bullish on Algiers deal happening
- More option expiries of note next week 7-11 Nov
- Option expiries for the 10 am NY cut today 4 Nov
- Nikkei 225 closes down -1.34% at 16,905.36
Data:
- China Q3 current account surplus flash reading USD 71.2bln
- September 2016 Eurozone PPI 0.1% vs 0.0% exp m/m
- Eurozone Markit services PMI Oct final 52.8 vs 53.5 exp
- Germany Markit services PMI Oct final 54.2 vs 54.1 exp
- France Markit services PMI Oct final 51.4 vs 52.1 exp
- Italy Markit/ADACI services PMI Oct 51.0 vs 51.5 exp
- Spain Markit services PMI Oct 54.6 vs 55.0 exp
With NFPs the main dish on the menu today markets have been understandably cautious ahead of the release at 12.30 GMT
USDJPY began the session on the rise from 103.00 as talk of a sovereign name buying circulated. Offers above 103.35 though were enough to cap the rally and we retreated back below 103.00 with some AUDJPY also sending AUDUSD into retreat from 0.7685
Other core pairs also came under a little early pressure on the yen demand with EURUSD getting an extra nudge lower on weaker final PMI readings only to then bounce back from 1.1090 but failing to make much progress.
Lots of option expiries in play and on that note GBPUSD has once again challenged 1.2500 but failed with talk of a reported barrier option adding to the supply. EURGBP selling has added to the supported cable tones from 1.2470.
USDCHF and EURCHF ran into decent supply at 0.9760 and 1.0830 as per the order boards and have both been in retreat.
Equities have remained on the back foot and extended opening losses while oil saw early losses before finding fresh demand. USDCAD therefore has been suitably contained in a 1.3390-20 range.
All eyes now on NFPs at 12.30 GMT
