ForexLive European morning FX news wrap: US$ suffers further losses post-Yellen but buyers lurking again.
Forex news and economic headlines 30 March 2016
- Coeure says negative rates are not the major tool of ECB
- Japan's Abe still considering additional stimulus package before the Summer - NHK
- Japan's Abe says inbound tourism important for economic growth strategy
- China speeding up work on financial regulatory reform
- Buba's Weidmann says Europe would lose an important voice if UK left
- Buba's Dombret sees negative rates coming for private bank customers
- ECB's Villeroy says Eurozone is not in deflation
- Preview: BOE governor Carney up to the rostrum tomorrow 31 March
- Look out below if cable breaks 1.4370
- AUDUSD enjoying the Yellen fall-out but offers nearby
- ICYMI: The difference between capital adequacy and liquidity. More from guest economist John Hearn.
- Option expiries 10am NY cut today 30 March
- Nikkei 225 closes down -1.31% at 16878.96
- Bavaria CPI March mm +0.8% vs +0.3% previously
- March 2016 North Rhine CPI 0.4% vs 0.1% prior y/y
- Saxony March CPI mm +0.8% vs +0.3% previously
- March 2016 Eurozone economic sentiment 103.0 vs 103.8 exp
- US MBA mortgage applications -1.0% vs -3.3% prior
- Switzerland KOF leading indicator March 102.5 vs 102.0 expected
- Spain total mortgage lending Jan yy +15.4% vs +18.8% previously
- Switzerland UBS consumption indicator Feb 1.53 vs 1.45 previously
- Japan vehicle production Feb yy -6.9% vs -5/8% prev
The session started off with a further slap in the face for the greenback after Yellen's speech yesterday but US$ bulls have not been too far away from the action.
The pound led the way after USDJPY wobbled lower through 112.50 dragging the Nikkei lower too and as the fall-out continued to 112.02 we saw cable up through 1.4420 resistance only to run into fresh supply at 1.4450. EURGBP demand into 0.7830 also helped cap the move and we've since back to 1.4380 and 0.7871.
The euro was also getting some support from stronger regional CPI data out of Germany and that's helped EURUSD up to 1.1332 before running into decent offers. Dip demand on core pairs also saw EURJPY hold 127.00 so far.
AUDUSD and NZDUSD continued to enjoy the limelight but barrier option defence at 0.7700 has seen a retracement to 0.7653 with NZDUSD following it back down as traders booked some profit.
USDCAD suffered a double whammy of softer $ and firmer oil but has survived a test of 1.3000 from 1.3080 so far while USDCHF has been on the back foot but finding a little EURCHF-related support.
Now we wait to see whether North American desks have a continued appetite to carry on where they left off yesterday.
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