Forex news and economic data headlines 27 September 2016


  • Germany denies the denial of the denial over Deutsche Bank denial
  • The handbags are out in Germany as De Zeit denies BaFin's denial
  • Germany's BaFin is not working on Deutsche Bank rescue plan - Reuters
  • It's all smiles in Germany today as economic institutes raise growth forecasts
  • German government is preparing a rescue plan for Deutsche Bank
  • Talk of Deutsche Bank rescue helps euro recover some poise
  • BOE's Shafik says some further easing needed at some point
  • We won't be following Japan down the rabbit hole says Shafik
  • BOE's Shafik: November rate decision will depend on the data
  • ECB's Draghi says structural reform needed to lift rates from lower bound
  • S&P see Brexit reducing 2017/18 Eurozone GDP by 0.7%
  • Libya is expecting an OPEC deal today
  • Iran working with OPEC on a "supply management" agreement - Shana
  • About those production freezes - Russia pumps record amounts in Sep
  • Italy's Renzi says lack of public investments have harmed growth
  • Option expiries in play as markets wait on Yellen
  • Option expiries for the 10 am NY cut today 28 Sept
  • Nikkei 225 closes down -1.31% at 16,465.40


  • Germany GFK consumer confidence Oct 10.0 vs 10.2 exp
  • France consumer confidence Sept 97 as exp
  • Italy manufacturing confidence Sept 101.9 vs 100.9 exp
  • August 2016 Italian hourly wages 0.0% vs 0.0% prior m/m
  • Japan small business confidence Sept 47.7 vs 46.9 exp

Lots to throw into the mix today with Yellen and Draghi speaking later, the OPEC meeting, and on-going concerns over German banks. Large option expiries also having a say.

It's been a fractious session that's seen first the euro come under fire on those Deutsche Bank and associated rumblings only to find demand amidst talk of government bailout plans. The moves saw EURUSD fall to 1.1183 before rebounding to 1.1224 as the DAX staged a strong rally only to run into fresh supply as the bailout plans were denied.

EURGBP had dropped through 0.8600 only to rebound to 0.8640 on a combo of the euro demand and comments by BOE MPC's Shafik that further easing will be needed. That talk saw GBPUSD fall to test support at 1.2980 where a combo of buyers and EURGBP sellers saw some renewed demand and we've been around 1.3000 ( option expiry level) and 0.8625 since.

USDJPY has been mostly underpinned but caught up in the EURJPY and GBPJPY crossfire while USDCHF has also had a line drawn under it with the SNB never far away still.

AUSDUSD and NZDUSD have seen differing fortunes with AUDNZD rallying to 1.0587 while USDCAD has been mostly supported by general USD demand but coming a little lower as I type on oil price rally with comments hitting the wires from the OPEC meeting fringes.

So we move onto the main data risk of the day in US durable goods and then it's time for Yellen and Draghi to make their own potential impact. Should be seeing a fair bit of action before the day is finally over.