Forex news and economic data headlines 26 September 2016

News:

  • BOJ's Kuroda says they are ready to use every possible policy tool if needed
  • More from Kuroda: BOJ will closely watch impact of FX moves on economy and prices
  • Kuroda says it's hard to completely control long-term rate moves
  • More from Kurdoda (Part 4372): Doesn't think the Japanese property market is over heating
  • Trump and Clinton neck and neck in head to head poll - Bloomberg
  • UAE oil minister says he supports an output freeze but not a production cut
  • There will be an oil production deal soon
  • Iran wants to regain market share by next OPEC meeting - Livesquawk
  • IMF say the swiss franc is "moderately overvalued"
  • SNB's Moser says there is no need for policy change in current situation
  • S&P affirm New South Wales ratings at AAA/A-1+ with negative outlook
  • Earthquake of 5.7 magnitude hits Japan's Okinawa island
  • Option expiries for the 10 am NY cut today 26 Sept
  • Nikkei 225 closes down -1.25% at 16,544.56

Data:

  • Germany IFO business climate Sept 109.5 vs 106.3 exp
  • UK BBA mortgage approvals Aug 36,997 vs 37,100 exp
  • July 2016 Italian trade balance (non-EU) €4.89bn vs €3.46bn prior
  • Italy retail sales July mm -0.3% vs 0.0% exp
  • Japan leading index CI July final 100.00 as prev

A relatively steady start to the new week but one that's seen the pound and yen steal the headlines.

USDJPY was suitably uninspired by Kuroda's repeated hot air and we saw an early move down to 100.80 from 101.05 which in turn triggered some general yen demand that saw GBPJPY on the slide again.

Add that to some renewed EURGBP strength into 0.8700 from 0.8650 and it wasn't long before GBPUSD was testing Friday's 1.2916 lows after an early attempt to hold get back above 1.2980.Overall the pound has had a soggy time of it as week-end press only adds to the hard Brexit uncertainties.

Elsewhere EURUSD had an early look at 1.1220 support/demand on the early EURJPY supply through 113.00 but found support again helped by better German IFO data and has rallied to test offers/res around 1.1255

AUD and NZD have held their own while CAD has been largely been dictated by the fluctuating but mainly firmer oil prices.

More CB talking heads to come in the NA session and we can expect the fragile conditions to continue.