Forex news and trading headlines 9 December 2016

News:

  • ECB's Coeure says slower pace of bond purchases is a sign of confidence in Eurozone economy
  • ECB's Villeroy says they're doing what is necessary to meet targets
  • Do you have a question for the ECB?
  • EURUSD is tightrope walking old support following the Draghi dump
  • ESM's Regling says they are not preparing to bail out Italian banks
  • Germany's BGA bemoans earlier trade data
  • Bundesbank raises German GDP forecasts for 2016 and 2017
  • UK Brexit ministry says FT account of comments by Davis do not properly reflect govt policy
  • Bank of France forecasts 2016 and 2017 GDP growth of +1.3%
  • Ex-UK PM Cameron says populism cost him his job
  • China to start direct trading between yuan and 7 more currencies from 12 Dec
  • China says they will further advance supply-side structural reforms in 2017
  • Option expiries for the 10 am NY cut today 9 Dec
  • Nikkei 225 closes up +1.23% at 18,996.37

Data:

  • October 2016 UK visible trade balance -9.711bn vs -11.800bn exp
  • Germany trade balance Oct EUR +19.3bln vs +22.0bln exp
  • October 2016 UK construction output -0.6% vs 0.2% exp m/m
  • France manufacturing output Oct mm -0.6% vs -1.4% prev
  • Switzerland unemployment rate Nov SA 3.3% as exp

It's been a quiet session for the most part as a combination of option interest and ECB hangover largely contained moves but as NA desks awaken so we've seen the euro slide again.

After hours of trading 1.0605-25 EURUSD has fallen below 1.0580 sending EURGBP down to 0.8390 from 0.8430 after early failure above 0.8450. EURJPY has been steadier as equities firm and create a bit of yen selling.

EURCHF has remained under pressure despite the SNB's best efforts yesterday

USDJPY has moved up though Asian highs to take out decent offers/res between 114.80-115.00 to post 115.15 before stalling.

General USD demand has seen GBPUSD fall to 1.2556 before bouncing as EURGBP fell while AUDUSD has once again found 0.7500 a step too far and retreating to 0.7462 as I type.

USDCAD has rallied on the USD+ moves in the past hour and as oil retreats off its highs.

Not much data of note but markets are brushing that aside anyhow right now with bigger fish to fry.