Forex trading news and economic data headlines for the European session 28June 2016

News:

  • More on Osborne's decision not to stand in PM contest
  • Fin Min Osborne says it's the clear the UK is now going to be poorer
  • Germany's Merkel tells Bundestag she regrets Brexit decision of British people
  • Cable retreats again providing good two-way trading
  • Former BOE governor King says "Don't panic" on pound pandemonium
  • Fitch says Brexit could have longer-term negative implications for EU credit risk
  • UK's Cameron arrives in Brussels for EU summit
  • BOJ and Japanese government will hold a meeting tomorrow to discuss market moves
  • Japan's Inada says LDP will accelerate stimulus discussion once election is over
  • Japan's Inada says they should act if speculative FX moves are rapid
  • Japan's JGB yields all less than 0.1% for the first time
  • ECB's Draghi says global economy can benefit from alignment of policies
  • Fitch says latest Spanish election may reduce political risk but uncertainty remains
  • Option expiries 10 am NY cut today 28 June
  • Nikkei 225 closes up +0.09 at 15,323.14

Data:

  • Germany import price index May mm +0.9% vs +0.6% exp
  • France consumer confidence June 97 as expected
  • UK CBI retail sales balance index June +4 vs +7 prev
  • Spain retail sales May yy +2.8% vs +6.3% prev
  • Italy manufacturing confidence June 102.80 vs 102.1 exp

It's been a session that's seen some calm return as European equity markets find some buyers again.

Cable had a little look below 1.3300 to test the water but was soon back above 1.3300 and when equity markets opened in positive mode on the back of stronger futures and then proceeded to head higher we saw some risk-on resume.

Yen pairs rallied and that sent core pairs higher too with GBPUSD up to test offers/res between 1.3350-1.3400 before retreating to look at 1.3300 again. EURUSD posted 1.1112 from 1.1060 and USDJPY broke up through offers/res at 102.20 that had been holding it previously only to fail into the next tranche at 102.50

Oil firmed then tailed off a little which lent support to USDCAD posting 1.3040 as I type after falling to 1.2967 in early trading. AUDUSD and NZDUSD both got a helping hand from yen-pair demand but that too has eased despite equity gains being maintained.

US Q1 GDP at 12.30 GMT will start the countdown to Friday's NFPs but it's Brexit fall-out that still dominates the airwaves.