Forex headlines for the European morning session 29 Nov 2016
News:
- Russia has no plans to meet with OPEC in Vienna tomorrow
- Kazakh energy minister will not attend OPEC meeting tomorrow
- Goldman Sachs see oil prices rallying above USD 50 if OPEC agree output cut
- Italy's Renzi not stepping down even if he wins Sunday's referendum
- EU's Dijsselbloem says there's no way London can still be main financial centre after Brexit
- GBPJPY demand sends core pairs higher
- China to adopt new measures to restrict capital outflows
- South Korea's Park set to resign
- Fitch says political risk looms large for global sovereigns in 2017
- Brazilian footballers in Colombian plane crash
- Option expiries for the 10 am NY cut today 29 Nov
- Nikkei 225 closes down -0.27% at 18,307.04
Data:
- Eurozone economic confidence Nov 106.5 vs 106.8 exp
- Saxony CPI Nov mm 0.0% vs +0.3% prev
- North Rhine Westphalia CPI Nov mm 0.0% vs +0.3% prev
- Brandenburg CPI Nov mm +0.1% vs +0.2% prev
- Germany import price index Oct mm +0.9% vs +0.6% exp
- UK mortgage approvals Oct 67.5k vs 65.0k exp
- France Q3 GDP flash qq +1.1% as expected
- Spanish November inflation beats expectations but still lower than previous
Another lively has that seen yen sellers return and that's given a leg-up to the pound with GBPJPY buyers leading the way.
With softer EZ data and firmer European equities we've seen the euro also on the back foot and EURGBP down to 0.8491 giving up all yesterday's BUBA month-end led gains.
I've said before that hedge funds like to use GBPJPY given its volatility/potential returns and it appears solid demand this morning has been flow/order based with GBPJPY up above 140.50 from 138.80. That demand has sent core pairs to 1.2491 and 112.73 and both still look underpinned despite running into fresh offers.
With the pound in favour and the euro on the back foot EURGBP has been an easy target to hit and that's kept EURUSD on the back foot with large option interest around 1,0620 providing a lid from the off.
USDCAD has been pinned down by the oil prices dip and part reversal as tomorrow's OPEC meeting outcome looks less and less positive.
AUDJPY demand early on saw a test of 0.7500 only to fail and fall back to keep the pair entrenched in its current 0.7450-7500 range.
Latest US Q3 GDP reading at 13.30 GMT the data highlight amongst a busy calendar to come with a couple of Fed heads in Dudley and Powell up to the rostrum.
