Forex news and economic trading headlines 25 July 2016

News:

  • EU's Juncker says there is no deadline for Brexit talks
  • Scotland's Sturgeon is exploring all options
  • PBOC says China should make FX rate more flexible for balance
  • SNB can cut interest rates lower says Jordan
  • Italian referendum could hinder banking fix
  • MAS says its stands ready to curb excessive volatility in trade-weighted SGD
  • 5 currency update from UOB
  • EURUSD in perky mood as cross plays add demand
  • Option expiries 10 am NY cut today 25 July
  • Nikkei 225 closes down -0.04% at 16,620.29
  • Earthquake of 6.1 magnitude reported off South Australia
  • July 2016 UK CBI industrial trends orders -4 vs -6 exp
  • Germany IFO business climate July 108.30 vs 107.50 exp
  • Japan leading index CI May final 99.7 vs 100.00 exp

It's been a gentle start to a week that could be explosive, anti-climatic or both as we wait on the FOMC and BOJ in the days ahead.

Euro has been underpinned on cross-pair demand, the pound has been up and down like the proverbial but in limited range as has USDJPY.

A falling Nikkei had USDJPY and yen pairs on the back foot to start with but with 106.00 holding we saw a rally that took USDJPY back to 106.33, GBPUSD 1.3154 and EURUSD 1.0980.

That rally was sold into capping core pairs with GBPUSD getting a further push lower on UK CBI data and we're now seeing fresh session lows of 1.3116 as NY enters the arena. USDJPY has retreated to 106.15 but EURUSD has found favour as others wobble and EURGBP/EURJPY demand has seen the pair chew its way higher to test 1.1000 res/offers only to give up on the first time of asking. Dip-demand noted though.

CHF pairs were unfazed by repeated comments from Jordan that the SNB were ready to act further while USDCAD has been underpinned by falling oil prices. Equity prices have been on the front foot but that hasn't fazed the euro to any real extent.

NZDUSD and AUDUSD have both been pinned in by cross-pair play and offering nothing of note in their own right.

Markets in Summer mode but we can expect things to pick up as the week progresses.