Forex news and economic headlines 11 April 2016
News:
- BOJ's Kuroda says they won't hesitate to add stimulus if needed
- OECD's Gurria says Japan should shift to taking more structural policy steps
- China's downward economic pressure can not be ignored
- Latest OECD report suggests stable growth for the Eurozone
- Pound flies across the board as buyers hit GBPJPY
- Germany's on the war path as Schaeuble looks to lock horns with Draghi over monetary policy
- Suicide bombers carry out explosions in Russia's Stavropol region
- Go with the flow, or not as the case may be
- Option expiries 10am NY cut today 11 April
- More option expiries of note coming up this week
- Nikkei 225 closes down -0.44% at 15,751.13
Data:
- Italy industrial production Feb mm -0.6% vs -0.9% expected
- BOJ March consumer sentiment index -22.5% vs -17.3% in December
A session that started slowly with more yen demand and general USD supply but a large GBPJPY buy order changed all that.
From Asian lows of 107.63 USDJPY had tested resistance into 108.00 as the Nikkei pared a few losses into the close but fell short and dropped back to 107.70. The renewed yen demand capped rallies in other core pairs and that seemed to be the flavour of the day but with European equities turning north in rapid fashion we saw the euro retreat further with dipping to 1.1385 after 1.1428 early highs.
EURGBP was falling back to test 0.8050 when a large GBPJPY buy order went through. We saw a rapid rise in GBPUSD through resistance/offers at 1.4150 to trigger stops through 1.4180 and eventually stop at 1.4228 with EURGBP triggering stops below 0.8050 to post 0.8005 adding to the mayhem. USDJPY rallied through 108.00 and posted 108.26 before all 3 pairs ran out of puff and we saw moves back to 1.4180, 0.8025 and 108.06.
Markets then paused for breath until a second wave of buying saw renewed attacks on 1.4250, 108.30 and 0.7995 only to run into resistance/support.
Meanwhile EURUSD was caught in the crossfire but ultimately enjoyed some EURJPY led demand, outweighing the EURGBP supply and we saw USDCHF doing its usual shadowing job.
USDCAD had an early rally as oil dipped but then both reversed and USDCAD has been back down to test support around 1.2960 from 1.3017 with added pressure from CADJPY buying.
AUDUSD and NZDUSD have both similarly enjoyed then yen-led moves to post 0.7578 from 0.7535 and 0.6844 from 0.6805.
Nothing of note on the data calendar but we do have a few Fed-heads up to the rostrum to keep an eye out for.
