Forex trading news and economic data headlines 26 October 2016

News:

  • ECB's Hansson cannot yet see a clear improvement in core CPI
  • Global oil freeze deal is unlikely to fail just because of Iraq says Russia's Novak
  • Amongst the wreckage GBPUSD reveals its true colours
  • Cable pops higher and triggers stops as USD supply prevails
  • Euro remains underpinned but offers still lurking
  • ESM's Regling says Greece could tap into market before its aid programme ends
  • China has no need to fake steady GDP growth - Xinhua
  • Cheapside, in the City of London, re-opened after security alert
  • BOJ said to move away from QE purchase target - Bloomberg
  • Ex-deputy gov Hamada says no need for BOJ to deepen negative interest rates for now
  • Taiyo Life says it plans to increase un-hedged foreign bond holdings of yen appreciates
  • Option expiries for the 10 am NY cut today 26 Oct

Data:

  • Germany import price index Sept mm +0.1% vs 0.0% exp
  • Germany GFK consumer confidence Nov 9.7 vs 10.0 exp
  • US MBA mortgage purchase index falls 6.7% to 207.8 in w-e 21 Oct
  • September 2016 UK BBA mortgage approvals 38,252 vs 37,350 exp
  • France consumer confidence Oct 98 as expected
  • Italy retail sales Aug mm -0.1% vs +0.4% exp

It's been a steady session by and large but one that's seen the US$ under a little pressure and the euro making the most of the supply.

After yesterday's nutty 2 hours or so and some further fun n games we've had EURUSD finally above 1.0900 again after holding 1.0850 yesterday, wiping its feet at 1.0915 before triggering a few stops to post 1.0925. Offers above 1.0930 with larger into 1.0950, along with strong EURJPY sell interest at 114.00 and EURGBP sellers above 0.8960 have all combined to cap further gains though as I type.

A move lower in EURGBP to 0.8930 from 0.8964 helped GBPUSD take out the 1.2200-10 res/offers and post 1.2226 in a rush before retreating back to camp around 1.2205 again.

USDJPY had found support in Asia at 104.00 after yesterday's failure at 105.00 as per the strong order board but it too has failed to make many gains and has been very much cross-ccy impacted.

USDCHF has had a slide down to 0.9904 after yesterday's rejection of 1.0000 despite a lift-up by the SNB but USDCAD has bucked the trend by rising to 1.3381 from 1.3335 as oil prices fell.

Also bucking the USD trend and subject to softer commodity plays we've seen AUDUSD fall back to 0.7668 after its post-CPI rally to 0.7709 in Asia

A good session for opportunity overall even if it did all slow down a bit after a lively start. US data to throw in to the mix as we wait on NA desks to show their hand.