Forex news and economic trading headlines 19 August 2016
News:
- Barclays already looking ahead to US NFPs and a rise of 200k
- Riksbank's Jochnick says they are prepared to do more if needed
- Australia's Morrison officially rejects Chinese bid for Ausgrid
- Option expiries 10 am NY cut today 19 August
- Nikkei 225 closes up +0.36% at 16,545.82
Data:
- UK public sector net borrowing July GBP -1.5bln vs -2.2bln exp
- Germany PPI July mm +0.2% vs +0.1% exp
- Spain trade deficit June -EUR 1.356bln vs -EUR 940.9mln prev
- Greece current account balance June yy +EUR 1.0bln vs +0.51bln prev
- Japan all industry activity index June mm +1.0% vs +0.9%
- Japan nationwide department store sales July yy -0.1% vs -3.5% prev
A strange morning, eerily quiet, but one that's still presented opportunity as USD demand returns and equities get sold. Oil has had a soggy morning too.
USDJPY was in recovery mode from Asian lows of 99.85 but back to 100.15 from 100.45 highs as Europe got underway. As equities turned lower we saw some yen demand capping core pairs and combined with a general USD+ sentiment we saw GBPUSD down to 1.3110 and EURUSD down to 1.1304 with USDJPY hovering around 100.20.
Since then we've seen GBPUSD back up above 1.3140 as EURGBP fell back from 0.8630 to 0.8611 only to bounce straight back sending cable lower again.
Notable movers have been USDCAD and AUDUSD as commodities got sold and we've had USDCAD up to 1.2849 and AUDUSD down to 0.7599 before both ccys found a little support as traders squared a few positions.
Little data of note but UK public borrowing worse than expected and that added to some GBP selling pressure.
Data to follow brings Canadian CPI and retail sales at 12.30 GMT
Nothing to set the world alight thus far but pips to be had yet again.
