Forex trading news and economic data headlines 23 March 2017

News:

  • BOE's Broadbent says weak pound probably reflects market view post-Brexit
  • BOE's Broadbent: Very positive consumption surprise has done nothing to sterling
  • ECB: Most EZ countries currently have no room for budgetary manoeuvre
  • Rates likely to stay low, could prompt Federal Reserve to allow higher inflation
  • Japanese March economic assessment unchanged from Feb
  • Eurozone banks took €233.47bn in last TLTRO
  • SNB says 2016 FX intervention totalled CHF 67.1bln
  • China's February crude oil imports from Iran +18.1% yy at 657,900 bpd
  • Moody's says election candidates policies carry mixed credit implications for France
  • London's Gherkin being evacuated - Livesquawk
  • Indian banks to meet finance ministry to discuss cash draining facility
  • Taiwan tries for US$29bn stimulus (over 8 years) - awaiting parliament approval
  • Barclays on iron ore: Will drop in Q2, demand eases
  • Pound finds support again after retreat from early highs
  • AUDUSD tumbles as iron ore prices fall
  • Option expiries for the 10 am NY cut today 23 March
  • Nikkei 225 closes up +0.23% at 19,085.31

Data:

  • February 2017 UK retail sales 1.4% vs 0.4% exp m/m
  • March 2017 UK CBI distributive trade sales 9 vs 5 exp
  • Germany April GFK consumer sentiment index 9.8 vs 10.0 exp
  • France March mftg confidence 104 vs 107 exp

Once again the session began with a spike in the pound which saw GBPUSD to 1.2517 from 1.2490 having held 1.2480 stubbornly for most of Asian session. EURGBP fell to 0.8632 from 0.8650 and GBJPY added to its bounce-back to post 139.24.

Then came a retreat but dip demand again noted as we waited on UK retail sales and an expected turnaround from last months dismal showing. Cue the data and the pound duly rallied again to post 1.2528, 0.8605 and GBPJPY 139.15 having fallen back to 138.40. Pound sellers though have been sharp to pounce on the moves again though.

That general yen demand sentiment has prevailed again though with USDJPY falling to test 111.00 and yen pairs generally lower helping to cap core pairs. AUDJPY has seen further falls exacerbated by lower iron ore prices and AUDUSD has posted 8-week lows of 0.7624 before recovering a little with gold finding some dip-demand.

EURUSD failed to hold gains over 1.0800 and duly tested 1.0770 support lines again with EURGBP and EURJPY supply both adding to the weight.USDCAD failed around 1.3350 and has drifted lower to 1.3315 with oil steady.

Equities have firmed after a mixed opening but generally a quieter session.

Focus remains on the Obamacare debate/vote later and that's helping the risk-off sentiment still. Yellen on the way at 12.45 GMT too.

Also to come are weekly US jobs data and new housing reports and some more CB talking heads.

Quite a mix then and another busy session expected.