Forex news and economic trading headlines 22 July 2016

News:

  • Pound gets its marching orders after services slump
  • Down down deeper and down goes cable after soggy Services PMI
  • We have the tools to respond to market turbulence in the short term says UK's Hammond
  • UK gets a one-off post-Brexit special PMI today
  • BOE's Carney says global economy has demonstrated resilience
  • A first quarter look into Europe's debt black holes
  • China's CIC expects sluggish global economic growth in 2016
  • Option expiries 10 am NY cut today 22 July
  • Nikkei 225 closes down -1.09% at 16,627.25

Data:

  • July 2016 UK Markit CIPS Services PMI 47.4 vs 49.2 exp
  • UK Markit mftg PMI July SA flash 49.1 vs 48.7 exp
  • Eurozone Markit mftg PMI July flash 51.9 vs 52.0 exp
  • Germany Markit/BME mftg PMI July flash 53.7 vs 53.4 exp
  • France Markit mftg PMI July flash 48.6 vs 48.0 exp
  • May 2016 Italian retail sales 0.3% vs 0.1% prior m/m
  • Italy industrial orders May mm -2.8% vs +0.9% prev

It's been all about the pound again today but the others have had their moments too.

The session began with USDJPY on the back foot heading below 105.70 as the Nikkei fell but then we saw a reversal in both and sending USDJPY back above 106.00 giving a lift to yen pairs generally.

That momentum helped GBPUSD to rally from 1.3220 pivot to 1.3289 helped by traders taking money off the table ahead of the post-Brexit UK flash PMIs. Strong offers/res into 1.3300 saw cable cap at 1.3289 and was back at 1.3265 when the awful services sector reading saw GBP slapped across the board.

GBPUSD wiped its feet at 1.3180 but then continued lower to post 1.3085 so far. EURGBP took out 0.8350-60 offers/res to then test strong level at 0.8400 and overall the pound has had an awful time of it once again.

USDJPY continued its upward climb to post 106.30 while EURUSD has once again found itself caught up in all the fun n games elsewhere paying only lip service to the flash PMI data.

AUDUSD found itself on the back foot with AUDJPY selling and EURAUD buying but found demand into 0.7450 and bouncing to 0.7485. Offers/res at 0.7500 proving a step too far.

USDCAD has also found itself pinged around by cross plays and with oil trying to make its mind up and that's meant tight range again for the pair.

Canadian CPI and retail sales data coming up at 12.30 GMT and we've got more action to look forward to before the day is out.