Forex news and economic data headlines 6 September 2016
News:
- Moody's say outcome of US election will not impact on the USA's AAA and stable outlook rating
- Sweden's Riksbank leaves interest rates on hold
- Ingves says Riksbank ready to intervene and cut rates further if needed
- BOJ says it bought ETFs worth JPY 73.3bln today vs JPY 70.7 bln on 10 Aug
- Jaitley says Indian economy needs to grow faster than 7.1%
- China FX reserves end-Aug USD 3.19trln vs USD 3.20trln prev
- Swiss National Bank forex reserves Aug CHF 626.62bln vs 615.55bln prev
- Australia foreign reserves August AUD 63.0bln vs 66.0bln prev
- Cable falls again after disappointing data
- PBOC issues yuan 27bnln via MLF at unchanged rate
- Japanese earthquake update: Buildings in Tokyo shaken
- Option expiries 10 am NY cut today 7 Sept
- Nikkei 225 closes down -0.41% at 17,012.44
Data:
- July 2016 UK industrial production 0.1% vs -0.2% exp m/m
- France trade balance July -EUR 4.505bln vs -3.6bln exp
- UK Halifax house price index Aug mm -0.2% vs -0.1% exp
- Japan leading index CI July flash 100.0 vs 98.6 exp
A bad day at the office so far for the pound as another reality check sends GBP bulls running for cover again.
The session had begun with the Nikkei paring a few losses and putting a bid under USDJPY and yen pairs which in turn helped the core pairs with USDJPY rallying from 101.30 to post 101.65 and GBPUSD nudging back up through 1.3420 and EURUSD to test recent highs at 1.1265.
It wasn't long though before some general USD demand prevailed sending GBPUSD back to test 1.3400 and EURUSD 1.1240. Then came the UK data and cue an initial cable rally to 1.3412 only to fall back to 1.3385 then further down to 1.3360 as EURGBP finally chewed through 0.8400 to post 0.8414.
USDCAD has been on the back foot as oil prices remain underpinned and NZDUSD has also been oblivious to the USD demand elsewhere to rally strongly from 0.7420 to 0.7480 after stronger mftg data and bullish dairy trade news cited for the move.
On-going CHF demand and lack of any support from the SNB have seen USDCHF and EURCHF mostly pinned near session lows at 0.9680 and 1.0890
Equities have just above kept their head above water but largely contained.
Carney and Co up before UK lawmakers at 13.15 GMT and BOC interest rate decision at 14.00 GMT
