Forex news and economic data headlines 5 October 2016
News:
- Italy's Panetta says ECB may adopt new tools to ensure accomodative policy
- BOE's Broadbent: We'll reflect in Nov what the news since August implies
- BOE's Broadbent hasn't made up his mind about action in Nov
- More from Broadbent: Date of Article 50 being triggered has no direct impact on BOE policy
- Cable runs into sellers again after better PMI data
- ESM's Regling says Greece is "most extreme" problem in Eurozone
- RBNZ's McDermott says they have a clear inflation objective
- USDJPY breaks up through 103.00 but more sellers lurking nearby
- Option expiries for the 10 am NY cut today 5 Oct
- Nikkei 225 closes up +0.5% at 16,819.24
Data:
- September 2016 UK Markit/CIPS services PMI 52.6 vs 52.0 exp
- Eurozone Markit services PMI Sept final 52.2 vs 52.1 exp
- August 2016 Eurozone retail sales -0.1% vs -0.3% exp m/m
- Germany Markit/BME services PMI Sept final 50.9 vs 50.6 exp
- France Markit services PMI Sept final 53.3 vs 54.1 exp
- Spain Markit services PMI Sept 54.7 vs 54.6 exp
- India Nikkei/Markit services PMI Sept 52.0 vs 54.7 prev
It's been a busy session that's seen equity markets turn back down, early euro demand run into sellers, another slap for the pound but good two-way business across the board.
USDJPY ran into sell interest at 103.00 and a good contest prevailed with a dip to 102.75 rebounding to have another look before dipping again. Finally the level broke but only to run into more exporter sell interest at 103.20.
While all this was going we saw early demand for the euro as European equities fell and bond yields rose sharply and that demand saw EURUSD up to post 1.1233 and EURGBP 0.8843. It wasn't long though before the ECB taper-talk effect was wearing a little thin amid mixed PMI data and we've since been back to 1.1216 and 0.8808. EURJPY demand though has helped to provide some support.
The EURGBP demand saw cable slapped lower again and it wasn't long before strong bids at 1.2700 gave way for a quick run lower to 1.2686b before buyers stepped back in. Since then we've held 1.2700 but failed to get back above 1.2750 even after better UK services PMI data.
AUDUSD had a quick early wobble to take out corp bids at 0.7600 but soon recovered while the NZ$ has remained on the back foot. USDCAD has been in steady ascent from 1.3175 to 1.3212 on the general USD demand shrugging off early oil price gains.
ADP NFP change on the horizon at 12.15 GMT followed by US and Canadian trade data.
A day of relative consolidation so far looking for further inspiration.
