Forex news and trading headlines 7 December 2016

News:

  • UK MPs to vote on Article 50 timetable today
  • EURGBP fails above 0.8525 again as traders eye the Article 50 vote later
  • BOJ's Iwata says negative rate policy had flattened yield curve more than expected
  • Are we due a surprise from the BOC today?
  • Turkey's Erdogan says economy is being targeted through FX speculation
  • UAE confident that Russia will join output cuts
  • UK house prices show a mixed bag in November
  • Citigroup trader in the frame for accelerating the GBP flash crash in October
  • China foreign currency reserves end-Nov USD 3.052trln vs USD 3.121trln end-Oct
  • SNB foreign currency reserves Nov CHF 648.0bln vs 630.4bln prev
  • Australia November foreign reserves AUD 69.9bln vs 64.9bln prev
  • Option expiries for the 10 am NY cut today 7 Dec
  • How to Trade What's in Front of You With a Complex Exit Strategy + Cheat sheet
  • Nikkei 225 closed up +0.74% at 18,496,69

Data:

  • October 2016 UK industrial production -1.3% vs 0.2% exp m/m
  • France trade balance Oct EUR -5.202bln vs -4.35bln exp
  • Germany industrial production Oct mm SA +0.3% vs +0.8% exp
  • Italy Q3 unemployment rate 11.6% as exp

With markets still dancing on hot coals anything to do with Brexit gets more than its fair share of attention/hype/blame and today's apparent turnaround by UK PM May has put the spotlight back on the pound.

GBPUSD has fallen to 1.2578 as EURGBP had a look above 0.8520 again before traders took some money off the table. Overall the pound has witnessed a similar tone to the session.

EURUSD has been tightly bound with large option expiries at 1.0750 casting a shadow but supported into 1.0700 regardless.

USDJPY rallied to 114.40 on positive risk sentiment as equities surged while USCHF has again remained underpinned with the SNB never too far away and that's still keeping EURCHF comfortably above 1.0800

The aussie dollar has found renewed support across the board after the post-GDP tumble and we've seen AUDUSD rally to 0.7463 from 0.7418 while USDCAD has been tightly bound between 1.3260-1.3300 with oil rallying then falling in almost equal measure.

Bank of Canada decision today and that Article 50 vote the highlights but data we also get the UK NIESR GDP estimate and US JOLTS job openings.