Forex news and economic trading data 9 September 2015

Read all about the Abe inspired 7.71% rally in the Nikkei

  • August 2015 Japan consumer confidence index 41.7 vs 40.5 exp
  • August 2015 Japan machine tool orders prelim -16.5% vs 1.7% prior y/y
  • July 2015 UK industrial production -0.4% vs +0.1% exp m/m
  • July 2015 UK visible trade balance data -11.08bn vs -9.50bn exp
  • Pound suffers a dose of reality following trade and industrial data
  • China's NDRC says growth is under pressure due to overcapacity
  • Will the true Chinese GDP number please stand up
  • Russia could increase oil production by 1% in 2015 - Livesquawk
  • ECB's Praet says growth will slow after Q1 2017 - Livesquawk
  • Praet: QE is largely producing desired effects
  • China economy faces downward pressure says Li
  • EU: Signs point to the IMF being on board with Greek review
  • BOJ said to be thinking about trimming price outlook
  • Large stops being touted in GBPUSD
  • Forex option expiries for the 10 am (14.00 GMT) New York cut 9 September 2015

Once more Asian events rode roughshod over the time zones to inject volatility into the early European day. Usually when Eamonn tells me it's been busy, I see a 10 pip range in EURUSD and tell him to stop pulling my plums. The poor chap looks like he's gone 10 rounds with Skippy the kangaroo after the week so far. He's tough as old boots though and is currently getting into shape for the Aussie speedo season, so it's all good

Abe gave Japanese stocks an early Christmas present with the promise of tax cuts for firms next year and the Nikkei and USDJPY loved it. The Nikkei also took strength from a generally risk on feeling in Asia to ride up and finish +7.7% at the close. USDJPY had Japanese retail traders to thank for lifting it and they decided to take some profits off the table ahead of 120.50. They managed a bit as we slipped back to 120.20 but Europe decided to get on the train early and took it up again and to 120.74. We've gone sideways since then

GBPUSD hadn't strayed far from the highs at 1.5400, which kept longs in the game. That was until UK industrial production and trade balance data came through the door. Longs then got their fingers trapped in the closing door as we fell a quick 50 pips to 1.5350. We've valiantly tried to claw our way back up but are finding it tough, at time of writing. That's potentially a bad sign for this latest rally and 1.5350 is becoming an increasingly important level. Stay above and the longs stay happy. Move below and they could start jumping out the windows

EURUSD didn't know which way to go again. It was down on risk to 1.1150 from 1.1215, then up to 1.1210 on the stock blow through and jump in the crosses. Now it's down again through the lows to 1.1144 and 1.1150 is becoming pivotal

Commodity currencies basked in the sudden change of sentiment but haven't been able to cement the gains. AUDUSD is off the highs at 0.7070 by just under 30 pips, and the same goes for the kiwi

Swiss pairs have had some fun too and have dropped by 100 pips or more each and are now in the process of recovering. There's been no news that I can note, bar some talk that the heady heights have brought some profit taking

On to the US session we go with the BOC announcement the headliner. USDCAD isn't giving any clues away as it sits virtually bang in the middle of the two week range. 1.3100 and 1.3350 are the edges to watch if they pull a rabbit or a smelly sock out of the hat