Forex news and economic headlines 12 April 2016
News:
- Bundesbank's Weidmann sides with Draghi against Germany's ECB complaints - FT
- ECB's Villeroy says low interest rates are consistent with mandate
- Greek government says it will meet it all its bailout obligations
- Any Doha oil deal will not change the market fundamentals says Goldman Sachs
- Russia's Novak sees oil price at $40-45 per barrel in H2 2016
- LIBOR scandal trader gets let off £250k fine by the FCA
- EURUSD retreats from large sell interest around 1.1460
- Form an orderly queue here folks. More EURUSD sell orders noted between 1.1500-10
- Pound keeps its inflated bid but can it push on?
- Pound feels the love but sellers poised still
- AUDJPY buyers noted but sellers waiting in the wings
- Option expiries 10am NY cut today 12 April
- Nikkei 225 closes up +1.13% at 15,928.79
Data:
- March 2016 UK CPI 0.5% vs 0.4% exp y/y
- UK March PPI input mm NSA + 2.0% vs +2.3% expected
- Germany March CPI mm final +0.8% vs +0.8% expected
- March 2016 US NFIB small business optimism index 92.6 vs 93.5 exp
- French 2015 current account deficit final tally comes in at -€4.3bln
- Japan machine tool orders March flash -21.2% vs -22.5%
It's been another good session for the pound helped along by stronger than expected CPI data.
A continuing softer yen led to stronger Nikkei which led to further yen losses and this set the early tone with core pairs finding support. USDJPY wiped its feet at the first tranche of offers at 108.30 but failed at the next wave at 108.50.
The US$ softness from here led to core pairs maintaining gains and it wasn't long before the UK data brought about a decent move higher on second wave demand. Gains on GBPUSD to 1.4348 stopped short of its own large offers at 1.4350 though just as EURUSD had done so at 1.1465 which in turn led to EURGBP falling back through 0.8000. Lows so far of 0.7962 have helped cushion the retreat to 1.4312 while EURUSD has returned to look at option expiry support at 1.1400.
Elsewhere USDCAD has had a further move lower to 1.2850 as oil continues to firm while AUDUSD has been pulled around all session by AUDJPY after a decent Asian rally. Offers/resistance around 83.00 have capped gains on core pairs with AUDUSD finally breaking up through 0.7650 only to stall at 0.7272.
Not a lot on the data front to come from the US but a few Fed heads once again up to the rostrum.
