Forex trading news and economic data headlines 7 February 2017



A busy session that's seen heavy yen demand early on as risk-sentiment wobbled again but there's been some general USD demand too.

USDJPY began late-Asia/early-Europe on a bounce from 111.75 but failed to breach 112.00 and retreated. The 4th attempt though triggered stops to post 112.27 and that started a period of USD buying that saw GBPUSD, EURUSD, and AUDUSD all lower with USDCAD and USDCHF making gains.

The USDJPY rally though failed to prevent yen gains and we saw GBPJPY fall on order flows through 139.20 then 139.00 in a rush triggering stops and testing next lines at 138.50. GBPUSD fell through 1.2425 then 1.2400 in a similar rush triggering stops to post 1.2347 forcing EURGBP up to 0.8635 after earlier falling into the 0.8585 support area.

EURUSD has been on the back foot but once again caught in the crossfire while AUDUSD saw significant losses to 0.7608 from 0.7665 wiping out the post-RBA gains to 0.7681.

Treasury yields were rising and we were seeing some direct correlation. Equities were soggy and commodities lost a bit of shine.

We've had a decent yen reversal too though with traders taking money off the table after the rapid moves and we've seen USDJPY test 112.50, with EURJPY back above 120.00 and GBPJPY rallying through 139.00.

Unconvincing so far and we wait to see what NA desks can bring to the mix.

US and Canadian trade data the next data risk at 13.30 GMT