Forex news and economic data wrap 20 September 2016
News:
- Former BOJ board member Shirai favours rate cuts over bond buys
- Pressure on the pound increases as GBPUSD gives up 1.3000
- What's your trade for the BOJ?
- Early USD sales turn to USD buys - Saudi plane held in Manila "under threat"
- Situation in Manila has ended peacefully say Saudi Airlines - Livesquawk
- BOF's Villeroy sees 2016 French GDP at 1.4%
- Swiss government raises 2016 GDP forecast to +1.5% vs 1.4% prev
- IG shares take a knock as it says dull markets are holding it back
- Option expiries for the 10 am NY cut today 20 Sept
- Nikkei 225 closes down -0.16% at 16,492.15
Data:
- Germany PPI August mm -0.1% vs 0.0% exp
- Switzerland trade balance August CHF +3.02bln vs +2.81bln prev
- Japan convenience store sales Aug yy +0.6% vs +0.3% prev
The session started quietly enough with most eyes on the BOJ and Fed tomorrow but attention was soon turning to the beleaguered pound as Brexit and central bank uncertainty pushed the sell button again.
With EURGBP rallying strongly on general euro demand once EURUSD triggered off stops above 1.1180 we saw cable in steady decline from 1.3065 helped on its way by some GBPJPY supply as yen pairs fell too.
That move saw USDJPY give up 1091.75 support and head sharply to test 101.50 as traders reign in expectations of any major move from the BOJ. Those GBPJPY plays have helped push GBPUSD down below the 17 Aug lows and test strong demand around 1.2950. EURGBP held a test of 0.8600 again after the initial rally to post fresh highs of 0.8629.
Meanwhile USDJPY clawed its way back from 101.53 to try 102.00 again while EURUSD gave up on its rush above 1.1210 to retreat back to from whence it came around 1.1180.
USDCAD has survived a test below 1.3200 to retrace to 1.3235 as oil prices retreated while AUDUSD and NZDUSD both gave up early gains as commodities softened and USD demand returned.
Bank of Canada gov Poloz speaks later at 16.45 GMT but before that we have some US housing data to throw in the mix at 12.30 GMT.
