Forex news and economic headlines 27 April 2016
News:
- UK facing "a major negative shock" if it leaves the EU
- ECB's Hansson sees a much stronger impact from corp bond buying
- Second round inflation effects have been contained so far says Hansson
- ECB's Lane says decisions in March were data driven
- ECB's Coeure says they are not considering or discussing helicopter money
- China's Xi says they are facing increasing economic and social problems
- Was the shock drop in CPI the straw that breaks the RBA's back?
- Macquarie brings RBA interest rate cut forecast back to May
- Goldman Sachs still expecting RBA rate cut next week
- Option expiries 10 am NY cut today 27 April
Data:
- Q1 2015 UK GDP prelim 0.4% vs 0.4% exp q/q
- Germany import price index March +0.7% vs +0.3% exp
- Germany GFK consumer confidence May 9.7 vs 9.4 exp
- Eurozone M3 money supply March yy +5.0% vs +5.0% exp
- Spain retail sales data March SA yy +4.4% vs +3.4% exp
- April 2016 UK CBI distributive trades -13 vs 12 exp
- France consumer confidence index April 94 vs 95 exp
- Italy consumer confidence index April 114.2 vs 115.0 exp
- Switzerland UBS consumption indicator March 1.51 vs 1.45 prev
- Japan small business confidence April 47.8 vs 48.5 exp
- Japan all-industry activity index Feb -1.2% vs -1.3% exp
A busy session that saw the pound steal the limelight either side of UK Q1 GDP data, and the Aussie $ still under the cosh after weak Q1 inflation data.
The session opened with AUDUSD still reeling from the CPI data but finding support into 0.7600 and that helped stop the rot on other AUD pairs. Rallies have been capped by fresh selling though and the ccy remains on the back foot.
GBPUSD had an early look at support/demand into 1.4550 only to rally sharply to 1.4620 with talk later of good demand in the 07.00 GMT fix. With the impending release of the GDP data we saw a retreat all the way back to the lows as EURGBP rallied to 0.7785 on general euro demand which has seen EURUSD post 1.1334 before running out of air again.
In the wake of the UK GDP coming in bang on expectations, albeit softer than previous, we saw a relief rally in the pound and from 1.4545 cable has bounced back above 1.4600 sending EURGBP back down to 0.7738.
Meanwhile USDJPY has been caught in the cross-play crossfire with demand into 111.00 and offers/res at 111.50. USDCHF continues to shadow EURUSD with EURCHF underpinned still and USDCAD has fallen on stronger oil prices.
Equities have had a relatively quiet morning as all eyes focus on the FOMC at 18.00 GMT
US housing data before that at 14.00 GMT.
