Forex news and economic trading headlines 10 August 2016
News:
- BOE sees Brexit dampening capex, hiring and turnover
- BOE says it will incorporate yesterdays £52 auction shortfall in H2 of plan
- UK mortgage borrowers weren't scared off by Brexit in June
- BOJ already has outline of September policy assessment - Livesquawk
- China to expand current account yuan cross-border use
- Eurostar staff to stage a Brexit of their own
- USDCAD and the battle of the big figures
- Turkey's Cavusoglu says EU is making serious mistakes regarding failed coup attempt
- Fitch affirms NZ rating at "AA" with stable outlook
- The RBNZ will have to do more than cut by 25bps to lower the kiwi
- Option expiries 10 am NY cut today 10 August
- Nikkei 225 closes down -0.18% at 16,735.12
Data:
- France industrial production June mm -0.8% vs +0.1% exp
- US MBA mortgage applications 7.1% vs -3.5% prior
- Japan tertiary industry index June mm +0.8% vs +0.3% exp
A relatively steady session that's seen ccy pairs cruise rather than race but with the greenback still on the back-foot.
The USD selling started yesterday as markets dismiss Fridays NFP report and put US rate hikes back on the back-burner.
USDJPY had an early look at 101.10-15 support which dragged yen pairs lower too capping core pairs with GBPUSD falling 40 tics to 1.3028 and EURUSD a little less to 1.1140.
Then USDJPY started to climb again and back up went the core pairs until USDJPY ran out of puff above 101.50 and the subsequent retreat gave traders the USD-neg signal again.
So far GBPUSD has been back to 1.3080 but still facing strong sell interest around 1.3100 while EURUSD has led the charge to 1.1190 also with its own offers/res at 1.1200. USDJPY meanwhile has been down below 101.20 again but unable to crack new lows.
USDCAD has been on the slide to 1.3010 having capped at 1.3080 in Asia with oil prices staging a rally from the lows helping it on its way. AUDUSD has needed no excuse to advance and take out strong importer-led offers into 0.7720 to post 0.7741 so far. NZDUSD too seems unfazed by the RBNZ interest rate decision later tonight.
US JOLTS data to come but right now it's the US$ in retreat as markets push back the chances of rate hike again.
