ForexLive European FX News wrap: Commodities rally, euro firms, yen weakens in return to risk
Forex news and economic data headlines for the European session 26 May 2016
- G7 Summit: Abe says they agreed on need for flexible fiscal spending to spur growth
- G7 Summit: Japan's A be warns of another Lehman-strength crisis
- G7 Summit: Merkel says there's little room left on monetary policy
- G7 agreed to recognise that the global economy is facing big risks says Abe
- Other news:
- Germany's Schaeuble r epeats that Brexit would cause "immense damage" to Europe
- Fed's Bullard: Markets expect almost no normalisation
- Bullard: Market expectations for June are substantially positive
- PBOC - M2 growth will show an obvious slowdown in coming months
- Nippon Life expect USDJPY around 115 at end of FY 2016
- Moody's say Austra lian banks' balance sheets remain solid
- Large AUDUSD option expiries casting a shadow
- Commodity currencies getting a shot in the arm as oil keeps tinkering with the $50 mark
- Option expiries 10 am NY cut today 26 May
- Nikkei 225 closes +0.09% at 16,772.46
- Q1 2016 UK GDP revision 0.4% vs 0.4% exp q/q
- UK BBA mortgage approvals April +40.1k vs +44.7k exp
- Spain Q1 GDP qq final +0.8% vs +0.8% exp
- Italy retail sales Marchmm -0.6% vs +0.2% exp
- Italian wages flatter than Piadina in April
Another roller coaster ride for the pound, firmer commodity prices, euro demand and yen selling have all featured in a busy session.
USDJPY opened still looking a little punch drunk from its Asian dumping to 109.42 in rapid time but found support into 109.60 to start its journey back to 110.00 as risk appetite returned. EURJPY found demand around 122.50 and that helped lift EURUSD back above 1.1190 as did EURGBP, rising from 0.7580 to 0.7614 as the pound had a post-GDP data wobble.
That wobble, a delayed reaction to some less than great data, saw GBPUSD fall quickly from 1.4715 to post 1.4577 but there has been enough dip demand on this pair and GBPJPY to offset the impact of EURGBP demand and we've been back above 1.4700.
AUDUSD was on its way to a decent recovery from the Asian lows with option expiry-led demand taking it back above 0.7210 and the firmer commodity tones have helped see another spurt to look at the res/sell interest above 0.7220.
USDCHF has found itself underpinned again as safe-haven demand recedes with EURCHF also climbing up to 1.1086 after being on the back foot a little this week but finding support below 1.1050
USDCAD continued its post-BOC journey lower helped by firmer oil with Brent posting $50.26 and WTI $49.97. USDCAD capped at 1.3000 and posted lows of 1.2933 before running to fresh demand.
US durable goods the main data event to come at 12.30 GMT