Forex news and economic data headlines 14 October 2016
News:
- Bank of England is not indifferent to the level of sterling says Carney
- BOE's Carney: BOE can't deliver long-term prosperity
- BOE's Shafik: The benefits of August stimulus package outweigh the negatives
- BOE wants to remove uncertainty around inflation and rates says Carney
- We haven't heard the last from Carney & Co today yet
- BOE report shows unsecured credit to UK households rose in Q3
- May to Tusk - The British people have made their decision and we are going to get on with it
- Pound finds some support as Carney says the Old Lady's not indifferent to GBP level
- S&P comments on pound possibly losing reserve currency status being cited for earlier GBP retreat
- France's Sapin says UK must not try to sway policies before Brexit to suit itself after
- Serbian central bank noted buyers of the euro
- Option expiries for the 10 am NY cut today 14 Oct
- Nikkei 225 closes up +0.49% at 16,856.37
Data:
- August 2016 Eurozone trade balance €23.3bn vs €20.4bn exp SA
- September 2016 Italian HICP 0.1% vs 0.1% exp y/y
- August 2016 UK construction output -1.5% vs 0.2% exp m/m
- Spain CPI September final mm 0.0% vs +0.1% exp
- Switzerland PPI Sept mm +0.3% vs +0.1% exp
Like it or not Brexit is going to be right up there on the headline count for a long time yet.
The session began with USDJPY climbing back up through 104.00 as USD demand continued but we were also seeing GBP sellers return with traders citing an S&P report in last night's Telegraph ( see above).
GBPUSD fell from 1.2245 to 1.2186 and EURGBP rallied to 0.9043 from 0.9022 before the focus turned to the euro and we saw EURUSD lower into 1.1000 with EURGBP retreating and putting a bid back under cable.
Further USD demand helped GBPUSD have another wobble to 1.2167 before running into fresh demand and we were soon back above 1.2200. Cue a raft of comments from Carney & Co and one in particular that said they "weren't indifferent to level of sterling" and a further rally to 1.2256 with EURGBP posting 0.8991.
Since then we've steadied the ship a little but traders continue to jump around on hot coals.
Meanwhile the Aussie $ continued to find favour on Chinese data/commodity price rally combo and we've seen AUDUSD climb to 0.7635 from 0.7585 and NZDUSD also benefitting for the same reasons albeit to a lesser degree.
USDCAD has fallen to 1.3170 after sustained demand above 1.3220 for the past few sessions as oil prices firm again.
Focus now moves to US data at 12.30 GMT and the potential of a Yellen news bomb later in the session.
