Forex news and economic trading headlines 17 August 2016
- News:
- UK's Hammond: Economy will adjust to Brexit from a position of strength
- Pound demand short-lived after jobs data with sellers quick to jump back in
- It will take a surprise to lift the dollar - BOAML
- Stops triggered in AUDUSD send the pair tumbling
- Option expiries 10 am NY cut today 17 August
- Nikkei closes up +0.90% at 16,745.64
Data:
- July 2016 UK claimant count -8.6k vs 9.5k exp
- US MBA mortgage applications -4.0% vs 7.1% prior
- August 2016 Swiss ZEW investor sentiment -2.8 vs 5.9 prior
Another busy session that didn't set the world alight but still provided enough opportunity to make a few pips.
USDJPY started the day on the rise with the Nikkei posting fresh highs into the close and the pair posted 101.17 from 100.50 and with it dragged GBPUSD up to 1.3053 from 1.3020 as GBPJPY burst up through 131.00 to post 131.80.
It wasn't long though before yen demand returned and sent core pairs lower too with USDJPY falling to 100.65 and GBPUSD to 1.3012 with both pairs finding good sell interest at 101.20-25 and 1.3060.
UK jobs data came in better than expected and that sent GBPUSD up to 1.3060 and EURGBP down to test 0.8625-30 again but the relief was short-lived and given that it wasn't wildly off-expectations and most of the wages data was from June we've seen GBPUSD post 1.2996 and EURGBP 0.8673 both fresh session lows. Large option expiry interest at 1.3000 today keeping cable contained for the moment.
With yen demand back in vogue we saw AUDJPY selling drive AUDUSD through decent support around 0.7660 then 0.7640 triggering stops to 0.7616 so far before finding a few buyers again. The move triggered similar falls in NZDUSD and NZDJPY.
USDCAD had a look above 1.2900 from 1.2870 only to fall back pulled round by oil and yen plays
The US Fed FOMC Minutes have been casting a shadow and we wait to see what they deliver at 18.00 GMT
