Forex news from the European morning session 22 Feb
News:
- Boris shows his colours so where now for the Pound?
- Welcome to the real Brexit trading
- Italy's Renzi says Brexit consequences worse for UK than EU
- Citigroup raise Brexit probability to 30-40% vs 20-30% previously
- IEA says oil market will begin rebalancing in 2017
- IMF's Lagarde says oil exporters will have to adjust to low oil prices
- China crude oil imports from Russia up 15% y/y at 793k bpd in January
- China's XI says they will increase targeted economic adjustments in 2016
- A life lit up by Wall St - Guest trader
- Guest Trader - The only money the markets can take from you, is money you allow it to
- Look out below as EURUSD trades down through the 200 dma
- South Korea's Yoo says discussion needed globally on ways to calm markets
- Serbian central bank selling euros
- Option expiries 10am NY cut today 22 Feb
- Chinese equities close higher 22 Feb
- Nikkei 225 closes up +0.90% at 16,111.05
Data:
- Eurozone Markit mftg PMI Feb flash 51.00 vs 52.0 exp
- Germany Markit mftg PMI Feb flash 50.2 vs 51.9 exp
- France Markit mftg PMI Feb flash 50.3 vs 49.9 exp
- February 2016 UK CBI industrial trends orders -17 vs -12 exp
- Italy HICP Jan yy final +0.4% as exp
- Switzerland M3 money supply Jan yy +1.4% vs +1.7% prev
- Switzerland Producer & Import prices mm Jan -0.4% vs -0.3% exp
We've seen some good overall USD demand but the focus has been well and truly on the pound and Brexit.
Early trading saw a continuation of the GBP selling seen in Asia as Brexit fears returned and the Boris Johnson show rolled into full gear. GBPUSD has so far fallen to 1.4115 from opening levels of 1.4270 after a failed rally into 1.4300. EURGBP has posted 0.7835 from 0.7775 before finding a few sellers on overall euro selling as equities rallied.
The USD positive tones have been far spread with not only cable lower and EURUSD down to 1.1026 after failing to hold above 1.1100 and USDJPY gaining further to 113.38 despite EURJPY falling to a 30-month low of 125.00.
Oil has looked perky adding to the risk-on sentiment which has seen USDCHF rise to 0.9983 with EURCHF clinging on to 1.1000 and USDCAD falling back into 1.3740 after rallying from 1.3728 to 1.3778.
AUDUSD and NZDUSD have found cross-play and commodity based support to counter the USD demand with AUDUSD rallying well only to fail into 0.7200 so far.
Busy times and there's no sign of them stopping any time soon.
