Forex news and economic data headlines 29 September 2016
News:
- More from Harker: November is a live meeting. December decision "not clear yet"
- Normalising our monetary stance would be good for business investment says Fed's Harker
- Fed's Harker is another to have a pop at government
- India confirms it has carried out surgical strikes on Pakistan launch pads
- Kuroda says new framework has enhanced sustainability of BOJ policies
- Pound pauses for breath but the heat's not off just yet
- ECB can ease again if inflation remains weak - German institutes
- EU's Dombrovskis says Basel deal still important but work remains to be done
- Italy's Renzi says Brexit will be a "very difficult process"
- Option expiries for the 10 am NY cut today 29 Sept
- Nikkei 225 closes up +1.39% at 16,693.71
Data:
- August 2016 UK mortgage approvals 60,058 vs 60,150 exp
- Germany unemployment change Sept 1k vs -5k exp
- September 2016 Eurozone economic sentiment 104.9 vs 103.5 exp
- September 2016 Baden Wuerttemburg CPI 0.7% vs 0.2% prior y/y
- September 2016 North Rhine CPI 0.7% vs 0.4% prior y/y
- Brandenburg CPI September mm +0.4% vs -0.3% prev
- Saxony September CPI mm +0.1% vs -0.1% prev
- Spain CPI September flash mm +0.1% vs +0.2% exp
Early moves carried on from the OPEC-led yen selling sentiment that we saw in Asia but it wasn't too long before the steam ran out.
USDJPY took out the 101.50 offers on the third attempt and went on to post 101.75 before running into fresh supply and that saw a retreat to test 101.50 again before dipping a little further.
With the yen-pair selling also underpinning core pairs we saw them capped as yen demand returned helped by oil prices giving up a few gains. The GBPJPY supply put the skids under the pound and combined with EURGBP demand and soft UK lending data we've seen GBPUSD test bids/support at 1.2985 as EURGBP rallied from 0.8615 to 0.8643 before reversing.
Meanwhile EURUSD has once again been caught in the cross-ccy crossfire and gone nowhere in a hurry around 1.1220 while USDCHF and EURCHF have dipped again as risk-off CHF demand returned.
AUDUSD had taken out the strong 0.7700 offers only to run into more at 0.7720 and added to the AUDJPY selling has caused a move back down to look at 0.7650. USDCAD moved up from 1.3060 to 1.3117 as oil retreated only to dip again as oil found a base.
Equities opened up around 1% but we've seen the DAX retreat as concerns over DB and Commerzbank continue.
The NA session brings us Part 2 of Yellen's yapping and a few other Fed-heads but prior to that we have US GDP data to throw into the mix.
