Forex news and economic headlines 5 April 2016
News:
- Japan's Suga says they will continue to monitor markets
- Nikkei 225 closes down -2.42% at 15,732.82
- US Fed's Evans says two rate hikes this year will be "appropriate"
- Greece could be heading into another snap election - MNI
- Greek debt is sustainable until 2022 and then will need new discussions
- ESM's Regling looking for an end to the Greek reforms review by early May
- IMF's Lagarde says global policy makers must take stronger action to counteract loss of growth momentum
- OECD says Germany has taken little advantage of low interest rates to boost investment
- Option expiries 10am NY cut today 5 April
Data:
- March 2016 UK Markit CIPS services PMI 53.7 vs 53.7 exp
- Germany Feb factory orders mm -1.2% vs +0.3% exp
- Eurozone retail sales Feb mm +0.2% vs 0.0% exp
- Eurozone Markit services PMI March final 53.1 vs 54.0 exp
- Germany Markit services PMI March final 55.1 vs 55.5 exp
- France Markit services PMI March final 49.9 vs 51.2 exp
- Italy Markit/ADACI services PMI March 51.2 vs 53.9 exp
- Spain Markit services PMI March 55.3 vs 54.5 exp
A busy session that picked up from where Asia left off and with global turmoil and growth concerns bringing a risk-off edge to trading we've seen the yen dominate and drag others down in its wake.
A softer Nikkei on stronger yen ( one feeds the other here) saw an early drop to 110.70 support where it wiped its feet before then taking out 110.50 barrier option support in one attempt. Lows into the next support around 110.30 followed in rapid time.
We've seen a similar pattern on core pairs which has dragged GBPUSD down to test 1.4200, EURUSD 1.1340, USDCAD up to 1.3160, AUDUSD 0.7525 and NZDUSD to 0.6760 to name a few.
Softer EZ PMI data added to the euro's woes while UK services data didn't shock but neither did it help the beleaguered pound.
European equities have fallen, gold has risen $10, while oil has been in consoildation mode trawling along the bottom of the 24 hour range.
Still to come is the US ISM , Jolts and API crude oil stocks.
A lively session ahead.
