Session Wraps - Major Forex Headlines wrapped up by trading session

Author: Eamonn Sheridan
4

Forex news for Asia trading Monday 16 January 2017

Monday:

Weekend:

Over the weekend we got UK's May set to lay out plans for "hard" Brexit. That was enough to send GBP dropping in the wee small hours of Monday morning here:

Cable fell under 1.2 in the super-thin liquidity conditions, down to under 1.1990 before finding enough in the way of bids and reduced selling to see it stabilise somewhat. Over the course of an hour it sat more or less sideways before recovering a few points towards 1.2050 where it once again struggled.

GBP crosses fell along with GBP/USD, of course. Currencies elsewhere opened (mainly) weaker. EUR, CHF, AUD and NZD all lower against the USD. JPY was the exception with some safety-seeking apparently helping the yen.

EUR/USD traded down to circa 1.0594 before covering its 'gap'. AUD lows were around 0.7473 and NZD/USD 0.7090 (all prices are guides, not definitive). Bounces for these were to (again, not definitive) 1.0635, 0.7510 and 0.7147.

NZD/USD has been particularly weak since its bounce high, its on the day's lows as I update now. AUD is not too far off while EUR/USD is around 1.0610 and just under.

Iron ore, rebar surged in China futures today, but this did not translate into AUD higher.

Japanese core machinery orders today was a notable data point - the m/m came in at a very weak reading (a big miss which does not augur well for capex 6 to 9 months out; a further concern is if the weak orders is due to Japanese business assessing global demand as weak there are implications outside of Japan for growth as well).

As usual, US politics bubbled away in the background, over the weekend and into monday, with president-elect trump giving an interview to both the UK Times (UK Times reports: Trump says Brexit will end up being a great thing) and German paper Bild (More on Trump: Disses NATO,EU; threatens BMW tax).  

Regional equities:

  • Nikkei -0.87%  
  • Shanghai -1.40%
  • HK -1.03%
  • ASX +0.50%

Still to come:

  • It's a US holiday for Martin Luther King Day - financial markets are closed.

More:

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Author: Adam Button

Forex news for US trading on January 13, 2017

Markets:

  • Oil down 45 cents to $52.56
  • Gold up $3 to $1198
  • S&P 500 up 4 points to 2274
  • US 10 year yields up 3 bps to 2.39%
  • NZD leads, USD lags

Friday the 13th was probably the least-scary trading day of the year so far. There were some good moves, especially in the dollar but no signs of panic.

After a week of focusing on politics and bonds, the market had some fundamental data to focus on today. The problem was that the market move didn't follow the numbers.

December retail sales missed estimates with the control group especially weak. But whether it was flows or deeper fears in the market because of retailer warnings, the US dollar rallied off the news. USD/JPY shot to 114.80 from 114.00 and the continued as high as 115.40. It got a second wind from U Mich consumer sentiment, which was also a tad soft.

The ranges were tighter elsewhere but still lively. EUR/USD peaked at 1.0670 early in US trading as it ran into resistance at yesterday's high. It tracked down in the USD rally to 1.0600 and took out a few stops below the figure before starting a slow climb to 1.0640 later.

Cable followed the same pattern as it started US trading at the daily high and was at the daily low of 1.2130 in a few hours in a 100 pip swing. It managed to catch a bid into the London fix and that helped the pound to a rare gain on the day, albeit a small one. May's speech Tuesday and the Supreme Court decision on the Brexit vote coming before Parliament will be big news in the week ahead.

USD/CAD was much more subdued on Friday than earlier in the week and that reflected the lack of news and quieter trading in oil. The range was 1.3104 to 1.3162 but there were several looks at each side.

The Australian dollar has been impressive so far in 2017 and that continued Friday as it rallied 50 pips off the lows to finish higher for the 8th time in 10 trading days this year. Keep a close eye on the chart as it's facing some stiff near-term resistance.

Have a great weekend.

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Author: Mike Paterson
2

Forex news and trading headlines 13 Jan 2016

News:

Data:

Not a lot in terms of data or rhetoric but that's not stopped us from seeing some decent moves as the week draws to a close.

USDJPY led the way first off with a fall from 115.07 to 114.53 before bouncing to 114.87 only to run into fresh sellers.

It's been the pound that's grabbed the spotlight though with a test of 1.2150 for cable only to run into decent demand and it was short covering time back to 1.2234 with EURGBP testing 0.8700 after failing to get across 0.8750. That move also ran out of steam though and we've been back to 1.2174 and 0.8744.

EURUSD has generally been underpinned but with main impact coming through EURGBP and EURJPY plays again while USDCHF has drifted lower but tempered by EURCHF demand once more.

Commodities have been largely on the retreat with WTI falling to $52.45 from $53.12 and that's put a base under USDCAD into 1.3120 but unable to get back through 1.3150 so far.

European equities opened firmer and have made some further gains but trading off highs as I type.

Coming up : GMT

13.30 US retail sales

14.30 Fed's Harker

15.00 US Michigan Sentiment

18.00 Baker Hughes rig count

20.30 CFTC spec net positions

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