Forex headlines for the European morning session 25 Nov 2016
Happy Thanksgiving again to all those still celebrating around the globe !
News:
- USDJPY has its biggest pullback since the Trump rally began
- USDJPY finds dip-demand into 112.50
- Referendum vote is not about my future says Italy's Renzi
- AUDUSD underpinned but fails to hold gains over 0.7450
- FX option expiries of note next week
- Option expiries for the 10 am NY cut today 25 Nov
- Nikkei 225 closes up +0.26% at 18,381.22
Data:
- Q3 2016 UK GDP 1st revision 0.5% vs 0.5% exp q/q
- November 2016 UK CBI distributive trades 26 vs 12 exp
- September 2016 Italian retail sales -0.6% vs 0.2% exp m/m SA
- Italy industrial sales Sept mm -4.6% vs +4.2% prev
- Spain PPI October 25 Nov mm +1.5% vs +0.3% prev
- France consumer confidence Nov 98 as expected
Another lively session as the week-end approaches.
Main headline act has been USDJPY which after falling into barrier option defence at 114.00 in Asia has tumbled to 112.56 before running into fresh demand. Bids/support at 113.20 and 113.00 were hardly given time to breathe on the rapid descent in a general USD sell-off that saw EURUSD post 1.0615 from 1.0570 and AUDUSD finally breach 0.7450 before running into more supply.
The EURUSD rally gave EURGBP a leg up to 0.8535 which in turn pushed GBPUSD down to 1.2416 but then it all turned around and with Q3 GDP revision springing no nasty surprises we've seen GBPUSD back up through 1.2470 (twice) and EURGBP fall below 0.8500 before once again finding pound sellers.
USDJPY found support below 112.60 (twice) as per my order boards and has been back up through 113.05 (thrice) while USDCAD has been down to 1.3453 before rallying to 1.3500 where a brick wall appeared with large option expiries there today.
USDCHF fell to 1.0122 and has struggled to rally back through 1.0150 since (twice) after again failing into 1.0200 in Asia. NZDUSD has made steady gains from 0.7010 to post 0.7053 but ran out of steam as USD demand returned.
Equities opened in mixed mode and have made universal losses since albeit not to any great extent while oil enjoyed an early rally but turned back lower since with Brent finding buyers around $48.20 (twice) and WTI into $47.20 (twice
US markets open in theory and we have Trade/Services PMI data but expect limited liquidity as our US friends enjoy the long Thanksgiving holiday.
