Forex news and economic trading headlines 5 Sept 2016
Happy Labour Day hols to our US and Canadian readers
News:
- G20: China's Xi says global economic recovery is weak
- G20: Lew says he has underscored the need for a highly integrated EU-UK relationship
- G20: Trudeau pleads to get Canada-EU trade deal resolved
- Japan's Shirai says BOJ likely to prefer rate cutting over buying more bonds
- Saudi and Russia to meet at next OPEC meeting - Reuters
- Saudi oil minister says agreement with Russia helps market stability
- September could be a horrid month for oil shorts as the expectation bandwagon starts rolling
- RBI says Urjit Patel has now taken over as governor
- Yen demand capping core pairs again
- Option expiries 10 am NY cut today 5 Sept
- More option expiries of note over the next few days
- Nikkei 225 closes up +0.66 % at 17,037.63
Data:
- UK Markit/CIPS services PMI Aug 52.9 vs 50.0 exp
- Eurozone Markit services PMI Aug final 52.8 vs 53.1 exp
- Germany Markit/BME services PMI Aug final 51.7 vs 53.3 exp
- France Markit services PMI Aug final 52.3 vs 52.0 exp
- Italy Markit/ADACI services PMI Aug 52.3 vs 51.8 exp
- Spain Markit services PMI Aug 56.0 vs 54.2 exp
- Eurozone retail sales July mm +1.1% vs +0.5% exp
- September 2016 Eurozone Sentix investor confidence index 5.6 vs 5.0 exp
- India Nikkei/Markit services PMI Aug 54.7 vs 51.9 prev
It's been a session that's seen the pound gain after strong PMI data only to retreat on renewed yen demand that started in Asia after dovish comments from Kuroda.
USDJPY was already slipping along with the Nikkei and that pattern continued as Europe opened putting a cap on core pairs as USDJPY fell to post lows of 103.15.
GBPUSD had an early test of 1.3300 before then rallying sharply to 1.3376 after the strong UK services PMI pausing for breath at 1.3345 with EURGBP sliding to test 0.8350 support. Renewed yen demand then added to the GBP offers and we've been back to 1.3320 and 0.8380.
EURUSD survived a test of 1.1150 as EURJPY fell to 115.12 and yen-pair selling has also capped AUD and NZD gains.
USDCAD had an early test of 1.2900 as oil prices firmed on output freeze talk from joint Russia/Saudi statement only to rally back toward 1.2950 as oil prices retreated.
US and Canadian holidays today so trading will be thin. Caution advised.
