Forex news and economic trading headlines 18 August 2016
- Pound rallies on stronger than expected UK retail data
- Pound to Brexit doom-mongers: Stick that in your pipe and smoke it
- Moody's say Brexit to increase resolution risks for European covered bonds
- What are the banks going to forecast for the pound now?
- Japan's Asakawa: Will continue to watch FX market for any speculative moves
- Abe advisor Honda says bold action by BOJ is likely in Sept
- German building permits rise strongly to 182,820 for H1 2016
- French unemployment fell too fast in 2013 says Hollande
- Moody's revises outlook for 5 Australian banks to Negative
- India's Jaitley says "we'll let you know when we decide" on next RBI governor
- Many reported wounded by car-bomb in Turkey
- Option expiries 10 am NY cut today 18 August
- Nikkei 225 closes down -1.55% at 16,486.01
- July 2016 UK retail sales 1.4% vs 0.2% exp m/m
- July 2016 Eurozone CPI final 0.2% vs 0.2% exp y/y
- France Q2 ILO unemployment rate 9.9% vs 10.1% exp
- Eurozone current account balance June SA +EUR 28.2bln vs +EUR 31.8bln prev
- Eurozone construction output June mm 0.0% vs 0.0% prev
Another lively session has seen the pound rally strongly after better than expected post-Brexit retail sales data as traders still chew over last night's FOMC Minutes.
USDJPY and yen pairs were the early movers yet again as the Nikkei fell sharply into the close and we saw lows of 99.75 from 100.10 sending yen pairs lower too but dip-demand kicked in again to stop the rot. USDJPY has since rallied to 100.50 helped by GBPJPY demand before running into fresh supply.
GBPUSD had found demand into 1.3035 ahead of the UK July retail sales data and much stronger readings sent the pair soaring to take out the strong resistance around 1.3100 in an instant, then 1.3130, then 1.3150 and we've seen highs of 1.3172 so far.
EURGBP said good-bye to the strong support between 0.8625-30 and posted 0.8591 wiping its feet at 0.8600 along the way. Overall the pound has seen solid gains and traders will be keen to see where early NA desks take it now.
The generally USD-neg sentiment has seen USDCHF down to 0.9570, USDCAD to 1.2798 and EURUSD up to 1.1332. AUDUSD failed to hold gains above 0.7700 undermined a little by an outlook downgrade on 5 Aussie banks by Moody's.
Next data up are the US Philly Fed indices at 12.30 GMT while FOMC's Dudley is scheduled to speak at 14.05 GMT