Forex news and economic data headlines 12 September 2016
News:
- ECB fear that political interests take priority over economic ones in EU
- OPEC: Crude production fell 23k to 33.24mbpd (secondary sources)
- Yen buying still the order of the day as equities extend losses
- There's only one button being used today
- BOE's Shafik to leave the Bank of England - Livesquawk
- PM Key says NZ dollar reflects strength of New Zealand economy
- Moody's say Chinese RLGs will continue to improve economic and financial position in 2016
- Shorting GBPUSD could keep you well fed in Autumn say BNPP
- Option expiries 10 am NY cut today 12 Sept
- Nikkei 225 closes down -1.73% at 16,672.92
Data:
- Italy Q2 unemployment rate qq 11.5% as expected
- Japan machine tool orders August flash -8.4% vs -19.7% prev
A data-free day but not one without opportunity as US rate hike fears once again send a few sell signals through the markets.
Selling of yen pairs has been the dominant theme as the risk-off sentiment sees equities and commodities in jitter-mode.
USDJPY posted a few gains early doors as the Nikkei pared some losses but failed attempts to break 102.60 gave us the clue and it was down, down, deeper and down for that and associated pairs.
USDJPY retreated to 102.20 wiping its feet there before another wave saw the pair test 102.00. Similarly EURJPY and GBPJPY selling saw core pairs tumbling. GBPUSD failed at 1.3285 in early upward action as EURGBP retreated from 0.8485 but with GBPJPY being a prime mover it wasn't long before we heading down through 1.3265 then 1.3250 triggering stops both times to post 1.3235 in a rush.
EURUSD found itself under the cosh from the EURJPY and EURGBP supply and that heavily diluted any funding-ccy demand/perception arising from the falling European equity markets. We've been down to 1.1211 from 1.1264 and still looks on the back foot with the EURGBP correction to 0.8457 putting a bid under GBPUSD and send the pair back to 1.3264 with GBPJPY also bouncing off 135.10.
The safe-haven swiss franc has also been in demand and that's limited USDCHF rallies with EURCHF steadily falling to 1.0938 from 1.0973
Softer commodity prices have helped push AUDUSD down to test 0.7500 where it's put up a stubborn fight so far while USDCAD has risen to test 1.3120 resistance as oil prices retreat.
Attention is on the speech by Fed-head Brainard at 17.15 GMT today and whether, as widely touted, she will turn from dove to hawk.
