Forex news and economic data headlines 7 October 2016
News:
- BOE looking into cause of pound flash crash
- Here's (even) more commentary from around the place on why GBP was crushed
- Picking up the pieces from the pound-ing: What happened and what's next?
- Stick to the 00's and 50's for your support and resistance in GBP until things settle down
- Pound under pressure once again ( Part 3472)
- Reuters revise their GBPUSD low to 1.1491
- IG revises GBPUSD low to 1.18 from 1.12
- Option expiries in play on GBPUSD today
- Option expiries for the 10 am NY cut today 7 Oct
- Nikke 225 closes down -0.23% at 16,869.09
Data:
- Germany industrial production Aug mm SA +2.5% vs +1.0% exp
- August 2016 UK industrial production -0.4% vs 0.1% exp m/m
- UK visible trade balance Aug GBP -12.112 bln vs - 11.25bln exp
- France industrial production Aug mm +2.1% vs +0.6% exp
- Japan leading index CI Aug flash 101.2 vs 101.6 exp
After the crazy Asian moves in GB pairs we've sellers return in European trading with the jury still out as to what exactly happened last night.
GBPUSD opened around 1.2435 and was somewhat subdued to begin with, even finding a few buyers before running scared of strong offers between 1.2480-1.2500 that I had highlighted. Cue a drop to 1.2430 and then finally back down through 1.2400 after softer UK data.
It didn't take long to test and break through strong demand at 1.2350 then 1.2300 then a fast and frantic round trip to 1.2230 and back to 1.2345. Crazy days and with NFPs to throw into the mix we also have strong option related sell interest at 1.2500 rolling off at 14.00 GMT
Pound pairs have all been tossed around in similar fashion and that's seen USDJPY retreat from 104.00 again to post 103.60 before running into bids again. Meanwhile EURUSD found a little support as EURGBP rallied from 0.8905 to look at 0.9100 in a rush before heading back down through 0.9000.
AUDUSD has been mostly on the back foot as has NZDUSD while USDCAD has rallied strongly from 1.3240 to test 1.3300 only to fail/retreat as oil retreated then found fresh buyers.
US NFPs can take the limelight away from the pound at 12.30 GMT but we can expect that Asian crash to keep rippling for a while yet.
