Forex news and economic data wrap 19 September 2016
News:
- BUBA's Weidmann says UK will lose financial passporting rights if it leaves EEA
- MNI sources reporting that ECB likely to keep rates on hold until at least year-end
- Merkel's CDU party suffer heavy losses in Berlin state election
- Informal OPEC talks shifted back a day
- German economy is slowing in Q3 says Bundesbank
- China's commercial banks sold a net USD 9.5bln vs yuan in August
- Only 53% of Leave voters optimistic that UK can negotiate a good Brexit deal
- Putin's United Russia on course for election victory
- Technical targets for EURUSD, GBPUSD, AUDUSD and USDJPY
- USDJPY breaks lower as 102.00 gives way
- USDJPY finds old support too much to take on this time around
- Option expiries for the 10 am NY cut today 19 Sept
Data:
- Eurozone current account SA July EUR +21.0 bln vs +29.5 bln prev
- July 2016 Eurozone construction output 1.8% vs 0.0% prior m/m
A busy enough start to the week but with more than one eye on the BOJ and US Fed decisions looming large this week.
Main movers have been the yen and pound again and it was early GBJPY demand that set the tone with GBPUSD finding buyers from 1.3030 to post 1.3075 and USDJPY surviving an initial test of 102.00 but unable to breach 102.20 res/offers.
Cue another test of 102.00 and then stop-losses triggered to set up a sharp fall to 101.70 before running fresh demand.
Meanwhile GBPUSD found itself in retreat on the GBPJPY turnaround along with EURGBP finding buyers below 0.8540 as the euro picked up fresh demand of its own. EURUSD refused to be held below 1.1150 on positive investment flow data and talk of the ECB not looking to cut rates again. Early pressure had come from a firmer equity, EURJPY/EURGBP selling combo.
AUD, NZD and CAD have found support from generally more positive commodity sentiment as hopes rise of an oil output deal
Nothing of note to come data wise so it remains to be seen whether NA desks have any appetite to pick up the baton as the BOJ/Fed cast their shadow.
