Forex trading news and economic data headlines for the European morning session 20 June 2016

News:

  • The ACT insight into the real forex market with ForexLive's Eamonn Sheridan
  • The ForexLive Brexit countdown: 3 to go as the remains take control
  • Pound feeling some further love after earlier retreat
  • Betfair lengthen odds on Brexit after week-end polls
  • Bundesbank report: Expects sharp slowdown in Q2
  • BOJ's Kuroda inflation expectations in practice are "highly sticky"
  • BOJ is still halfway to 2.0% inflation target says Kuroda
  • IMF's Lipton says Japan benefits from flexible exchange rate
  • China's commercial banks sell net USD 12.5bln in May vs USD 23.7bln in April
  • EURUSD retreats with large option expiries now in range
  • Fitch on India : Policies more important than personalities
  • Option expiries 10 am NY cut today 20 June
  • Nikkei 225 closes up +2.34% at 15,965.30

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Data:

  • April 2016 Eurozone construction output -0.2% vs -0.9% m/mprior
  • Germany PPI May mm +0.4% vs +0.3% expected
  • Japan nationwide department store sales May yy -5.1% vs -3.85 prev

A busy session as expected in the wake of sharp moves for the pound late in NY and Asian trading.

Or should that be the Bremain roller-coaster as pound strength has emanated from week-end polls showing the Leave campaign losing ground again after recent momentum.The polls have shown a significant sentiment change in the wake of the tragic murder of Labour MP Jo Cox and there's also some concern that the Leave campaign are somewhat over cooking their immigration dish sending the Undecideds toward Remain.

Anyhow after Asian cable highs of 1.4624 early Europe took some money off the table/tested the downside and we saw 1.4545 from 1.4590 only to rush into fresh demand. 1.4600 provided some respite then 1.4625 but as EURGBP fell through 0.7750 on general euro supply we saw cable highs of 1.4673 in a rush only then to retreat again to test fresh demand at 1.4600.

Meanwhile EURUSD has fallen to 1.1323 within reach of large option expiries around 1.1300 after stalling on its Asian rally into 1.1400 and we've seen the euro on the back foot generally as Europe corrects some of the Asian over reaction with European equity markets posting strong gains.

USDPY has mostly had the morning off in real terms caught up in the cross play crossfire which has also seen USDCHF rally into 0.9600 with EURCHF notably defying the otherwise euro weakness. The hand of the SNB will never be too far away this week, if ever.

AUDUSD and NZDUSD have both been relatively range bound after the Asian gains while USDCAD has turned lower to test 1.2800 from 1.2850 as oil nudges higher.

Not a lot on the data front but that's not stopping markets being in a whirl as the Brexit poll final countdown begins.