Forex news and economic trading headlines 11 August 2016
News:
- Interest Rate Cutting for Dummies - How not to fail the RBNZ way
- Credit Suisse offer 10 reasons why the UK could end up with negative interest rates
- GBPJPY selling once again the prime mover
- Pound on the back-foot again but still meeting dip demand
- Economic dynamics have decelerated somewhat says German economic ministry
- IEA cuts 2017 oil demand growth forecast by 100k bpd to 1.2mln bpd
- Option expiries 10 am NY cut today 11 August
- More option expiries of note over the next week - Update
Data:
- France CPI July final mm -0.4% as exp/flash
- Italy HICP July final -0.2% vs -0.1% exp
- Italy global trade balance June +EUR 4.662 bln vs +5.032bln prev
Stop me if you've heard this one before lately ( just a few times) but it's been all about the pound and yen this morning in a busy session.
USDJPY found itself under early pressure on renewed yen demand and that helped cap other core pairs. EURJPY was the first in the spotlight but then a large GBPJPY sell order was soon setting the pace and tone.
GBPUSD had already seen one failed attempt below 1.3000 but with sellers lining up into 1.3020 the second time of asking saw stops triggered below 1.2990 to hit 1.2967 then ultimately more stops through 1.2950 to session lows of 1.2935.
The move was accelerated by ongoing EURGBP demand and eventually breaking up through 0.8600 to post 0.8611 ahead of the 0.8629 post-Brexit highs only to fall back to 0.8585 as traders took some money off the table after a decent morning's work.
Meanwhile EURUSD has been on a 1.1170 to 1.1136 back to 1.1154 trip with cross ccy plays still very much the movers. USDCHF has been on the back foot as EURCHF sellers prevail again sending the pair down to 1.0865 with no sign of the SNB as yet.
USDCAD has also been in retreat in what still essentially is a USD-neg environment and with oil prices finding dip demand again. The NZ$ seems to have been suffering a post-RBNZ hangover and been mostly contained between 0.7230 and 0.7280 after the fall from 0.7343 in Asia.
AUDUSD has found decent demand under 0.7700 after retreating from 0.7725 Asian highs .
All in all it's been a decent session with plenty of opportunity. US initial jobless claims and export/import prices the main data to come at 12.30 GMT