Forex trading news and economic data headlines 17 Nov 2016
News:
- ECB's Mersch says low rates and accommodative policy remain appropriate
- More from Mersch: Not far from the point to say rates have bottomed out
- UK government faces a GBP 100bln black-hole in its finances
- Italy's Renzi says he has no interest in forming a coalition govt if he loses referendum vote
- OPEC is near consensus on a 6 month output deal
- EURGBP demand helping to lift EURUSD and cap cable
- India cuts limit of over-the-counter exchange of old 500 and 1000 notes to 2000 rupees
- Option expiries for the 10 am NY cut today 17 Nov
- Nikkkei 225 closes flat at 17,862.63
- October 2016 Eurozone CPI final 0.5% vs 0.5% exp y/y
- October 2016 UK retail sales 1.9% vs 0.4% exp m/m
Data:
- France Q3 ILO unemployment rate 10.0% vs 9.9% exp
- Eurozone construction output Sept mm -0.9% vs +0.1% prev
- Italy total trade balance Sept EUR +3.67bln vs +2.494bln prev
- UK October gross mortgage lending yy GBP 20.6bln vs 21.8bln
It's been a jobbers paradise this morning with good two-way business providing plenty of opportunity for the intra-day trader. Nothing really's changed though in the bigger picture and we still wait on Yellen to shake out the fuzziness.
USDJPY had seen both ends of 108.80-109.20 a couple of times in Asia and the pattern continued in Europe albeit with an extension to 109.47 on the topside before another retreat to the bottom of the range and bouncing.
Similar moves in GBPUSD and EURGBP with each taking turns to lead the other but mainly dominate by EURGBP dip demand at 0.8575 again giving cable good supply above 1.2500 once more after decent UK retails data.
EURUSD has felt some love and been underpinned by both EURGBP and EURJPY support amidst a general euro demand that has seen EURUSD rally to 1.4389 keeping a lid on AUDUSD.
NZDUSD has been contained by large option expiries at 0.7100 while USDCAD had a look at 1.3400 from 1.3440 as oil rallied
Equities have remained soggy.
All eyes now on 13.00 GMT testimony statement from Yellen and her actual appearance from 15.00 GMT
