Forex news and economic trading headlines 1 Sept 2016
News:
- Pound soars after strong UK mftg PMI data
- UK's Hammond appoints new BOE FPC member
- French 2016 and 2017 GDP forecasts still +1.5% says Sapin
- RBNZ will consider wider disclosure of lender liquidity
- BofA Merrill's take on initial jobless claims and ISM later today
- Does trading ever test your nerves like this ?
- Option expiries casting a shadow over AUD and CAD
- PBOC's Yi says yuan relatively stable despite recent fluctuations
- Option expiries 10 am NY cut today 1 Sept
- Nikkei 225 closes up +0.23% at 16,926.84
Data:
- UK Markit mftg PMI August SA 53.3 vs 49.00 exp
- Eurozone Markit mftg PMI Aug final 51.7 vs 51.8 exp
- Germany Markit/BME mftg PMI Aug 53.6 as exp
- France Markit mftg PMI Aug final 48.3 vs 48.5 exp
- Italy Markit/ADACI mftg PMI Aug 49.8 vs 51.2 exp
- Spain Markit mftg PMI Aug 51.0 vs 50.9 exp
- Switzerland SVME mftg PMI Aug 51.0 vs 50.6 exp
- India Nikkei/Markit mftg PMI Aug 52.6 vs 51.8 prev
- Switzerland retail sales July real yy -2.2% vs -3.5% prev
- Australia commodity index Aug yy +0.8% vs -2.7% prev
- Japan vehicle sales August yy +5.7% vs -0.2% prev
It's been all about the pound again as much stronger than expected/prev UK mftg PMI data brought sharp GBP rallies across the board.
Markets wouldn't normally react so strongly to mftg PMI data but these aren't normal times and anything that shows the UK is doing ok post-Brexit vote has more than a relief effect.
GBPUSD jumped from 1.3145 to 1.3257 in almost one move with EURGBP breaking down through 0.8470 recent lows to test 0.8400 in minutes. GBPJPY another prime mover posted 137.33 from 132.65
EURGBP supply and EURJPY dip-demand have underpinned the pound this week and now we wait to see whether the rally has further momentum.
USDJPY has been in positive mode again and after holding 103.25 has climbed steadily higher to 103.71 with yen selling noticeable across the board particularly vs GBP.
EURCHF ran into sellers at 1.1000 and retreated to 1.0967 pushing USDCHF lower to 0.9838 after another sharp (SNB-led?) rally to 0.9885.
AUDUSD and USDCAD have both been supported on option expiry interest at 0.7500 and 1.3100 respectively.
Oil had an early dip but ran into buyers again and been underpinned since.
European equities have been in positive territory but the FTSE did retreat on the stronger UK data as rate cur chances faded a little.
US initial jobless claims and ISM mftg PMI the main data risk to follow.
