Forex news from the European trading session - 16 January 2018
News:
- Bitcoin falls further to post losses on the day of 18%
- Regulatory talks are weighing down on Bitcoin today
- Cryptocurrencies' bloodbath makes everything else feel like a pinch
- ECB unlikely to drop pledge to QE program until inflation hits target next week - Reuters
- Berlin's SPD rejects coalition talks with Merkel's bloc - report
- USD demand prevailing as sellers take money off the table
- Euro falls on reports that German coalition talks break down
- PBOC advisor says not necessary for China to raise interest rates in near-term
- EU's Tusk: Need more clarity on UK's position on a post-Brexit future
- EU auditors find that ECB supervision of troubled banks has some flaws
- ECB's Lane warns that abrupt Brexit would be a "genuine shock" to financial stability
- Moody's: Still positive on European economic growth
- China 2017 GDP growth seen at 6.8% - Reuters poll
- China's president Xi Jinping held telephone call with Trump - state media
- EUR paring back losses as "nervousness" on German coalition talks settle down
- Trading ideas for the European session 16 Jan
- Goldman Sachs sees increasing upside risks to its oil forecasts
- Nikkei 225 closes higher by 1.00% at 23,951.81
- ForexLive Asia FX news wrap: USD/JPY has a bit of a bounce
Data:
- UK December CPI yy 3.0% vs 3.0% expected
- UK December PPI output NSA m/m +0.4% vs +0.2% expected
- Germany December final CPI m/m +0.6% vs +0.6% prelim
- Italy December final CPI m/m +0.4% vs +0.4% prelim
- France November YTD budget balance -EUR 84.7 bn vs -EUR 77.1 bn prior
- Italy November trade balance +EUR 4.83 bn vs +EUR 4.95 bn prior
- China December foreign direct investment -9.2% y/y in yuan terms
- Japan November tertiary industry activity m/m +1.1% vs +0.3% expected
Welcome back to our NA readers and I hope you enjoyed the long w-e.
A busy session dominated by a further sell-off in cryptocurrencies due to ongoing concerns over regulatory stances, particularly S Korea and China currently.Bitcoin fell over 18% at one point to post below 11,100 and others were quick to follow.
Elsewhere we saw an early wobbly on euro pairs as reports surfaced again of SPD pulling out of German coalition talks. EURUSD fell to 1.2218 from 1.2270 with EURGBP down to 0.8863 from 0.8895 and EURJPY also falling to 135.20 . A few buyers were happy to buy the dip but then Rtrs published a headline that the ECB were unlikely to drop pledge to QE program until inflation hits target next week .
Not a great surprise but cue further falls to 1.2201 as a swathe of general USD demand returned as commodities retreated too. Oil and gold both lower and that has seen AUDUSD down to 0.7939 from 0.7975 with USDCAD rising to 1.2453 from 1.2420
GBPUSD meanwhile has fallen to 1.3742 with softer core CPI data giving a little shove lower from 1.3775 but tempered by firmer RPI.
USDJPY held 110.60 but has failed to rally past 110.80 while USDCHF rallied to 0.9662 but tempered by EURCHF falling to 1.1786 from 1.1825 on the general euro supply.
US data at 13.30 GMT and the NY Empire State Mftg Index with the GDT auction result due shortly after for NZD traders to keep in mind.
