Forex news and economic trading headlines 27 July 2016
News:
- MOF official says Japan not considering 50 year bond
- Abe to announce stimulus package next week
- Japan's Abe will announce an economic stimulus package in excess of JPY 28 trln
- Japan's Suga not aware of any consideration to issue 50-year bonds
- FOMC Preview: Deutsche Bank say the ducks have aligned
- Citi sees £75bn in new QE coming from the BOE
- Option expiries 10 am NY cut today 27 July
- Nikkei 225 closes up +1.72% at 16,664.82
Data:
- Q2 2016 UK preliminary GDP 0.6% vs 0.4% exp q/q
- July 2016 UK CBI distributive trade sales -14 vs 1 exp
- Germany GFK consumer confidence August 10.0 vs 9.9 exp
- Italy manufacturing confidence July 103.1 vs 102 exp
- Spain retail sales June yy SA +5.6% vs +3.6% exp
Not the craziest of mornings but enough to keep the counters ticking over while we wait to see what the FOMC deliver later.
Yen pairs provided the early fun and games on headlines relating to the planned stimulus programme but since then we've settled down into more restricted range.
The pound had a brief rally on better than expected UK Q2 GDP flash but then got dumped as the market started to factor in the slowdown continuing in Q3 post-Brexit.
EURUSD has been pinned down by large option expiry interest while USDCAD had a rally then fall in line with oil prices.
AUDUSD and NZDUSD have both been on the back foot while CHF pairs have continued to look underpinned with the SNB seemingly never far away.
It's all a supporting act to the main event though and traders will continue to be twitchy into the FOMC at 18.00 GMT
