Forex trading headlines from the European morning session 13 August
News:
- BOE Quarterly Inflation Report: MPC sees “heightened uncertainty” about slack in economy
- BOE’s Carney says their forecast of pick up in productivity slack was over-optimistic
- BOE’s Carney says there is no numerical threshold for wage growth which will trigger rate rise
- BOE’s Carney declines to comment on precise timing of first rate hike
- BOE’s Carney: UK growth relatively broad-based, not debt-fuelled
- More from Carney: BOE will resolutely defend 2% inflation price target
- BOE’s Carney says MPC does not have a particular threshold for wage growth
- BOE’s Broadbent says it’s not clear that a higher share of self-employed in UK is bad for productivity
- Carney says the ECB LTRO programme will take some time to impact
- Carney says uncertainty about Scotland currency arrangements could cause financial stability issues
- Japan’s Abe says they will make every effort to get growth back on track
- BUBA’s Weidmann says ECB should wait to see impact of its latest measures
- BUBA’s Weidmann says France must reduce its very high level of public debt
- EU’s Ashton ready to call a special foreign ministers’ meeting this week
- EU regulators say Germany in breach of energy law
- SNB says Raiffeisen group is systemically important
- Pound falls back on weaker wages data
Data:
- UK claimant count unemployment change July -33.6k vs -30k exp
- German HICP July final m/m +0.3% vs +0.3% exp
- French CPI EU-norm July final m/m -0.4% as exp
- Spanish CPI July final m/m -0.9% as expected
- Eurozone industrial production June m/m -0.3% vs +0.3% exp
- China retail sales July y/y +12.2 % vs +12.4% exp
- China industrial output July y/y +9.0% as expected
- China fixed-asset investment Jan-July y/y +17% vs +17.4% exp
- US MBA mortgage market index w/w 337.7 vs 347.0 prev
- Swiss ZEW investor sentiment Aug +2.5 vs -1.0 exp
- Nikkei closes up +0.35% at 15213.63
Too many price moves on GBP to do all the detail here but in essence we saw early buying into the jobs/wages data with cable up to 1.6829 prior and EURGBP down around 0.7930 but its been mostly a one-way ticket since then albeit with bounces .Lows so far 1.6698 with EURGBP posting 0.8003 with the pound taken blows all over the body
EURUSD had an early wobble from 1.3370 to 1.3342 but good demand down there ,coupled with EURGBP buying, has seen the pair return to 1.3367
USDJPY benefitted from a firmer Nikkei and we’ve gone from 102.25 to 102.51 but good offers up there still are capping further rallies. USDCHF also had a firmer tone to it earlier but failed at 0.9100 again and has retreated to 0.9078
AUDUSD has looked perky but failed to break above strong offers at 0.9300 while NZDUSD has also nudged its way higher to 0.8447. USDCAD has largely been 1.0920-25 after bids at 1.0910 held an o/n dip
A busy session and one I hope that provided plenty of good opportunity even if it didn’t always suit