Forex news and economic data headlines 10 October 2016
Happy Columbus and Thanksgiving Days to our friends across the pond
News:
- ECB's Villeroy says Brexit will have negative effects, especially for UK
- Brexit takes its first trip to court this week
- UK Brexit minister to make a statement to parliament later today
- China's state planner says action must be taken to lower corporate debt levels
- Russia's Novak is hoping for clarification on OPEC's oil stabilisation steps
- August 2016 OECD global leading indicator unchanged - US down, UK & Japan up
- Australia foreign reserves Sept AUD 65.8bln vs 63.0bln prev
- German police thwart a potential terror attack
- Option expiries for the 10 am NY cut today 10 Oct
- More option expiries of note this week 11-14 Oct
Data:
- Germany trade balance Aug EUR +20.0bln vs +19.5bln prev
- October 2016 Eurozone Sentix index 8.5 vs 6.3 exp
- Bank of France business sentiment Sept 98 vs 99 exp
- Italy industrial production Aug mm +1.7% vs -0.1% exp
- Switzerland unemployment rate Sept SA 3.3% vs 3.4% exp
A more subdued session to start this week than the one that ended the last one and with the US and CAD away on hols traders have understandably been in low gear.
European traders began their day by testing the GBP down side and we saw a move in GBPUSD down to 1.2366 from 1.2410 with EURGBP climbing to 0.9040 from 0.9015 but it wasn't long before buying interest returned.
Since then we've been back up to 1.2429 as EURGBP gather additional selling interest down to 0.8984 and that interest has also put a cap on EURUSD at 1.1180 to post 1.1162 as I type.
Meanwhile USDJPY has climbed steadily off its Asian lows into 102.80 to rise to 103.43 and USDCHF up to 0.9815 in what has been a generally risk-on session as equities have rallied too.
AUDUSD had a look at getting above 0.7600 but failed with large option expiries there casting a shadow to push the price back to 0.7580 along with some cross-ccy plays also weighing.
USDCAD failed at the pivotal 1.3280 from 1.3230 Asian lows before retreating to test 1.3250 despite being underpinned.
So the jury's still out as markets look ahead to the US FOMC Minutes this week whilst still trying get their heads around what exactly did happen in Asia on Friday
