Forex trading news and economic data headlines 13 March 2017
Welcome NA desks to Daylight Savings Time. Yes it really is only 12.05 GMT !
News:
- ECB's Visco says European political paralysis risk has never been as high as today
- Swiss franc pairs in rapid retreat as sharp rally corrected
- Perky pound prevailing as EURGBP corrects lower
- A potential interest rate hike would be a threat says France's Fillon
- ECB’s Smets sees no assurance inflation will go up, no steps to remove stimulus
- UK government will not agree to any changes in Brexit bill that will compromise EU negotiations
- Sturgeon says conditions are in place for a new independence vote
- ECB won't raise rates until after QE is completed
- The ECB is doing a good job says IMF's Obstfeld
- Bank of France cut jobs by 4.7% says Villeroy
- Macron 2nd Round lead over Le Pen narrows to 62% in latest Opinionway poll
- Abe's government agrees overtime limit with Japanese Unions
- There's a risk that the oil output deal won't be extended
- Turkish lira on the slide again
- Moody's says reinstatement of US debt ceiling would pose no immediate credit risk
- JP Morgan's new forecast for year end USD/JPY is 105 (from 99)
- Option expiries for the 10 am NY cut today 13 March
- More option expiries of note this week 14-17 March
- Nikkei 225 closes up +0.15% at 19,633.75
Data:
- Italy January industrial output mm -2.3% vs -0.8% exp
- SNB total sight deposits w-e 10 March CHF 555.41bln vs 553.36bln prev
A busy start to the week that's seen the euro give up a lot of its recent gains as an overbought market meets up with a timely reality check.
As per my earlier posts there's been a few reasons why the euro has been in retreat inc:
- short term overbought conditions being corrected after last week's solid rally in EURCHF
- general correction of overbought EUR conditions since ECB last Thursday
- European political uncertainties prevailing again providing CHF safe-haven demand with Dutch election in focus this week
EURCHF fell to 1.0744 accelerated by sight deposit data after an early spike to 1.0825 and that undermined euro pairs along with EURGBP which had failed into 0.8800 and made a solid retreat to 0.8730
That gave GBPUSD an early lift to 1.2241 only to run into offers and fresh USD demand generally which also saw USDJPY hold 114.50 and USDCHF 1.0060.
AUD and CAD have also benefitted from some euro selling on the crosses but softer gold has undermined the former while a small rally in oil has benefitted the former.
No data of note today but Draghi stands up at 13.30 GMT to make to a conference called "Fostering innovation and entrepreneurship in the euro area" so I'm not sure how much mon pol talk there'll be but we'll stand poised anyhow.
