Forex news and economic trading headlines 29 July 2016

News:

  • Kuroda says BOJ didn't feel any government pressure before today's decision
  • Kuroda says he won't comment on specific policy options before review of BOJ's QQE
  • Kuroda says policy review is not intended to telegraph intentions to ease policy
  • Kuroda says BOJ easing designed to prevent overseas uncertainties from hurting Japanese business
  • More from Kurdoda: Wrong to think BOJ placing less importance on QE
  • BOJ to buy JPY 8-12trln of JGBs each month effective 1 August
  • Japan's Aso welcomes BOJ decision to ease policy
  • Japan's Ishihara says he welcomes BOJ decision to ease further
  • Japan's Suga says forex market showing quite nervous moves
  • Yen pairs in a roller coaster ride as BOJ fail to deliver
  • Russia's Novak sees over-supplied oil market for the rest of 2016
  • SNB announce H1 2016 profits of CHF 21.3bln
  • Month-end EURGBP demand having its say again
  • Option expiries 10 am NY cut today 29 July
  • Nikkei 225 closes up +0.56% at 16,569.27

Data:

  • July 2016 Eurozone CPI flash 0.2% vs 0.1% exp y/y
  • Q2 2016 Eurozone GDP flash 0.3% vs 0.3% exp q/q
  • France CPI July flash mm-0.4% as exp
  • Germany retail sales June mm -0.1% vs +0.1% exp
  • June 2016 Italian PPI 0.5% vs 0.7% prior m/m
  • Eurozone unemployment rate June 10.1 % as exp
  • July 2016 Italian HICP flash -0.1% vs -0.2% exp y/y
  • Spain CPI July flash mm -0.7% vs -0.9% exp
  • Italy unemployment rate June flash 11.6% vs 11.4% exp
  • UK BBA mortgage approvals June 64.8k vs 65.5k exp
  • Switzerland KOF leading indicator July 102.7 vs 101.4 exp
  • Japan housing starts June -2.5% vs -2.7% exp

It was always going to be about the BOJ fallout in this session and we've seen some good and volatile business.

The session began in the wake of the delayed announcement and the subsequent sharp spike to 105.63 before crashing back lower to 102.70 all in the matter of minutes. Yen pairs were pulled around correspondingly but core pairs were relatively stable letting USDJPY take the heat.

Then USDJPY demand below 103.00 prevailed as we waited on the Kuroda presser and we went into that around 103.40 and continued to nudge higher until fresh supply into 104.00 forced yet another retreat with month-end USD sales cited.

Amidst all of the flicking around we've seen the usual month-end EURGBP demand which has given EURUSD demand in the dips to 1.1080 to drive back up through 1.1100 while forcing cable down to test 1.3150 having failed to cling onto gains above 1.3200.

USDCHF and EURCHF have been noticeably softer with the SNB not returning after it's reported intervention on Tuesday.

AUDUSD and NZDUSD have both been in retreat never quite being able to recover from the earlier AUDJPY and NZDJPY selling.

US Q2 GDP the data highlight remaining at 12.30 GMT but the market will continue to digest the BOJ lack of action. Month-end business to also dominate . Watch out for the 15.00 GMT fix where a lot of it takes place.