Forex news and economic trading headlines 12 August 2016
News:
- Nikkei posts new session highs and underpins USDJPY
- USDJPY stretching its legs ahead of US retail sales
- Option expiries 10 am NY cut today 12 August
- Nikkei 225 closes up +1.10% at 16,919.92
Data:
- Q2 2016 Eurozone GDP flash 0.3% vs 0.3% exp q/q
- Eurozone industrial production June mm SA +0.6% vs +0.5% exp
- Germany CPI July mm final +0.3% vs +0.3% exp
- Germany Q2 GDP qq SA flash +0.4% vs +0.2% exp
- Greece Q2 GDP qq flash +0.3% vs -0.2% exp
- June 2016 UK construction output -0.9% vs -1.0% exp m/m
- China M2 money supply July yy +10.2%
- Spain CPI July final mm -0.7% as expected
- France Q2 wages qq flash +0.3% as expected
- China July vehicle sales yy +23.0% vs 14.6% prev
Plenty of data from Europe this morning not that markets have paid any real attention but we have seen some euro demand on the generally positive data vibe as we wait on US data to come.
Ranges have been extremely tight by and large and we can only hope that US retails and Michigan sentiment indices give a much needed injection. Remember though that these are typically Summer markets and that means famine or feast so we can only hope at best.
USDJPY and yen pairs generally found early support as the Nikkei posted new session highs in the afternoon session and after a couple of half-hearted attempts we've finally seen the pair post session highs of its own at 102.26.
Short-lived though as we're currently back to 102.10. and that's been typical of core pairs elsewhere with GBPUSD having an early look below 1.2950 on EURGBP demand only to base at 1.2940 and return to 1.2970 as the latter pair once again failed above 0.8620 but 0.8600 holding firm since. GBPJPY demand has also helped support pound pairs.
EURUSD has once again been caught up in the cross play crossfire and for the most part traded 1.1140-60 while USDCHF has gently picked up a bid from 0.9740 to post 0.9763.
USDCAD has shadowed the retreating oil price and found a base at 1.2960 for the moment. AUDUSD and NZDUSD have also both traded tightly between 0.7675-7695 and 0.7190-0.7210
So we wait to see if the US data can liven things up. Fingers crossed, but don't hold your breath.
