Forex trading news and economic data headlines 21 March 2017

News:

  • BOE's Carney says they fully respect judgement of TSC around Hogg resignation
  • Latest Opinionway poll has Macron beating Le Pen 61/39%
  • Tusk says EU committed to trade deal with Japan "very soon"
  • BOJ's Iwata says they are not trying to reach 2% inflation with weak yen
  • More from Iwata: BOJ unlikely to conduct debt selling operations any time soon
  • China's PBOC survey says business confidence index rises in Q1 vs Q4 2016
  • China may publish rules on outbound investment this year
  • Swiss government lowers 2017 GDP forecast to 1.6% vs 1.8% prev
  • Pound enjoying the stronger UK inflation data
  • AUD and CAD finding some commodity based support again
  • Option expiries for the 10 am NY cut today 21 March
  • Nikkei 225 closes down -0.34% at 19,455.88

Data:

  • February 2017 UK CPIH 2.3% vs 2.2% exp y/y
  • UK February PSNBR GBP 1.1bln vs 2.8bln expected
  • UK CBI March industrial orders 8 vs 5 exp
  • Spain January trade balance EUR - 3.134bln vs -2.447bln prev
  • Switzerland February trade balance CHF +3.11bln vs +4.83bln prev

A session short on rhetoric of note but UK inflation data was keenly expected and it didn't disappoint.

The pound had an early wobble around the 06.00 GMT witching hour which sent GBPUSD to 1.2341 from 1.2360 and EURGBP 0.8727 from 0.8705 in a rush but after that it was generally all one-way higher helped by the data.

So far we've seen GBPUSD up to 1.2475, EURGBP down to 0.8654 and GBPJPY up to 140.43 from 138.91 but all running out of steam a little as I type.

USDJPY had an early look at 112.85 again but gave up as general USD supply prevailed and we've been back to 112.43 while USDCHF has retreated to post 0.9948 from 0.9985 but with losses tempered by EURCHF demand to 1.0762. The threat of SNB smoothing is never too far away.

The euro overall got off to a decent start encouraged by some better showing by Macron in last night's French election tv debate and we had an early EURUSD pop through 1.0780, then posting 1.0812 after wiping its feet at 1.0800.

USDCAD has fallen to 1.3311 from 1.3360 on a softer USD/firmer oil double whammy while AUDUSD has recovered some poise to post 0.7739 after its post- RBA Minute wobble to test 0.7700 with metals enjoying a mixed session .

Equities opened firmer and have maintained its positive tones.

US current account and Canadian retail sales the data risks at 12.30 GMT while for NZD traders we also have the fortnightly GDT auction in the frame.

FOMC members George and Mester speak at 16.00 and 22.00 GMT respectively.