Forex news and economic data headlines 22 September 2016

News:

  • Japan's Asakawa says it will take time for market to digest BOJ decision
  • BOE FPC: Outlook for financial stability within the UK post- Brexit remains "challenging"
  • ECB Monthly Bulletin: Eurozone economic recovery is continuing
  • Russia willing to discuss measures with other oil producers
  • China's SAFE say capital outflows have been moderating
  • India appoints its external MPC members for minimum of 4 years
  • Queensland state funding body QTC says it will extend duration of its borrowing
  • 100 has a say after BOJ and FOMC but where does USDJPY go now?
  • What can we expect now from the FOMC ? - Here's a few thoughts from the banks
  • Option expiries for the 10 am NY cut today 22 Sept

Data:

  • September 2016 UK CBI industrial trends orders -5 vs -5 exp
  • UK gross mortgage lending +15.0% y/y in August
  • Spain July trade deficit -EUR 557.9m vs -1.357bln prev
  • France September manufacturing confidence 103 vs 101 exp

As markets reflect on the FOMC decision/indecision we've seen the yen under fire again while the euro has enjoyed some good support with the pound lagging.

With USDJPY finding support into 100.20 it wasn't long before yen-longs were bailing out/taking profit for post-FOMC positions. EURJPY got an extra lift as EURUSD buy-stops were triggered through 1.1210 to post 1.1228 in a hurry which in turn lifted EURJPY through 113.00.

With EURGBP also finding dip-demand again around 0.8580 it wasn't long before we broke up through 0.8600 and that capped cable at 1.3079 after some early GBPJPY-led buying. A move back down into 1.3050 support/demand lines was quickly reversed as EURGBP retreated and we saw new session highs of 1.3086.Plenty of supply up there though still .

Meanwhile EURUSD was forging higher to 1.1240 just ahead of good supply of its own. Also underpinned has been AUDUSD but running into a number of offers while USDCAD has drifted lower on general USD supply and steady oil. NZDUSD has drifted back down below 0.7320 from 0.7350 in the post-RBNZD deliberations.

One area where the euro hasn't dominated has been EURCHF where market uncertainty has seen sustained demand for the franc and seen a sharp dip to 1.0863 in later session trading with USDCHF down to 0.9662. Expect the SNB to be watching closely.

Quiet one data wise today but we do have Draghi speaking at 13.00 GMT and Carney at 17.10 GMT just in case anyone is suffering from CB withdrawal symptoms.