Forex trading news and economic data headlines for the European session 30 June 2016

News:

  • Boris Johnson: This is not a crisis this is a moment for hope and ambition
  • Leave campaign principal Gove to stand for PM job
  • Heads up - BOE's Carney speaks on Brexit at 15.00 GMT today
  • SNB's Zurbruegg says they are a true believer in flexible exchange rates
  • BOJ's Masai: Brexit vote added uncertainties to the global economy
  • PBOC said to be willing to let yuan fall to 6.8 vs USD this year
  • PBOC intends to maintain a stable yuan versus basket
  • Aussie $ falls as PBOC said to be allowing the yuan to devalue further
  • Chinese fund managers recommend cutting bond allocations to 6.3% vs 7.5% prev
  • Germany's VDMA says Brexit uncertainty will impact investment and production
  • Expect month-end EURGBP demand for a while yet despite Brexit
  • Option expiries 10 am NY cut today 30 June
  • Nikkei 225 closes up +0.06% at 15,575.92

Data:

  • Q1 2016 UK GDP final revision 0.4% vs 0.4% exp q/q
  • Germany unemployment change June -6k vs -5k exp
  • June 2016 Eurozone CPI flash 0.1% vs 0.0% exp y/y
  • France CPI June flash mm +0.2% as exp
  • China final Q1 current account surplus +USD39.3bln
  • Germany retail sales May mm +0.9% +0.6% exp
  • May 2016 Italian PPI 0.7% vs -0.9% prior m/m
  • June 2016 Italian HICP flash -0.3% vs -0.2% exp y/y
  • Japan housing starts May yy +9.8% vs +4.8% exp
  • Switzerland KOF leading indicator June 102.4 vs 102.6 exp

Fun n games all morning as month-end flows, sentiment changes and Boris bowing out all add up to a heady mix.

Loads going on and we've seen some decent moves albeit mostly within recent range but volatile nonetheless. GBPUSD opened up on the back foot but found strong demand/tech support below 1.3380 and the rebound was steady and ultimately testing 1.3500 again with large option expiries in play at that level.

Boris Johnson left it to the last minute, literally, to announce he wasn't going stand in the UK leadership contest and the pound saw a brief rally again before falling back.

EURUSD looked above 1.1100 again and this time has chewed its way higher helped by EURJPY demand with yen selling generally prevailing as equities turned higher. USDJPY enjoyed the yen pair demand and once 102.50 area held it was time to rally again. Offer/res into 103.00 still

The aussie $ had an early wobble on rumours the PBOC was going to devalue the yuan further to 6.80 by year-end and that sent AUDUSD to 0.7371 in a rush from 0.7430 only to recover all its losses on AUDJPY demand and then consolidated once the PBOC poured cold water on the reports.

USDCAD has been falling all session as CADJPY demand prevails and with large option expiries at 1.3000 keeping a lid on it.

Busy data morning and more to come with BOE gov Carney speaking at 15.00 GMT , the same time as the key month-end fix.