Forex news and economic data headlines 17 October 2016
News:
- BOE's Broadbent says hiking UK rates to meet inflation target could lead to "undesirable consequences"
- BOE's Broadbent says UK inflation is likely to rise over 2% in next two years
- UK cannot reverse decision to leave EU says High Court judge
- UK government says claims that Hammond is trying to slow down Brexit process are "rubbish"
- US trade representative Froman says no talks possible with UK until Brexit terms clarified
- Keep hitting GBPUSD rallies say Nomura
- BOJ maintains economic assessment for 6 of 9 regions
- BOJ says strong yen may be affecting consumer sentiment
- Iran hopes that a deal will be struck at OPEC's Nov meeting
- Russia ready to act on oil production freeze
- Option expiries for the 10 am NY cut today 17 Oct
- Nikkei 225 closes up +0.26% at 16,900.12
Data:
- September 2016 Eurozone CPI final 0.4% vs 0.4% exp y/y
- Italy trade balance Aug mm EUR +2.519bln vs +7.795bln pre
- Japan industrial production Aug final mm +1.3% vs +1.5% prev
A cautious start to a week that's see the pound remain in focus and on the back foot.
The session began with some USD selling as traders took some money off the table but attempts to get GBPUSD above 1.2200, EURUSD above 1.1000 and USDJPY below 104.00 all failed. Cue business as usual over the past few sessions and some general USD-positive sentiment.
That's seen GBPUSD retreat to 1.2145, EURGBP up to 0.9053 as the GBP-negative tones prevail helped by warnings about rate hike consequences,
Elsewhere EURUSD found support in the dip and is testing 1.1000 as I type on the EURGBP demand with USDJPY holding above 104.00. Eurozone CPI was the only data release of note but had no impact.
USDCAD had a rally to 1.3180 as oil retreated in early trading but has fallen back as oil recovered to post fresh session highs. AUDUSD and NZDUSD also had an early wobble but they too have benefitted from the firmer commodity sentiment.
Not much by way of key data to follow apart from US NY Empire State mftg index at 12.30 GMT and US industrial production/capacity utilization at 13.15 GMT
Draghi up to speak at 17.35 GMT with the welcome address at the opening of the European Cultural Days 2016
