Forex - European Highlights Thursday 16 February 2017 - Update


 10:49 (GMT) 16 Feb

  [Forex Highlights]

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European Highlights Thursday 16 February 2017 - Update (0100-LMPZ-C01)

European Highlights

16 February 2017

Asia FX and News -

+ PBoC won't roll over some temporary liquidity facility loans at some major Chinese commercial banks - Reuters.

+ Japan FinMin Aso and US Tsy Sec Mnuchin spoke by phone on Thursday - MoF.

+ Australia's Jan unemployment rate unexpectedly fell despite a plunge in full-time jobs.

+ Most of the mortgage debt in Australia has been borrowed by those most able to service it - RBA's Ellis.

+ AUD/USD took a step higher on the headline employment data but gave up some of the gains as the split between full and part-time jobs was noted. The USD overall retained the weaker tone after Wednesday's failure to maintain the gains seen on solid data, while the N225 also headed lower to weigh ion USD/JPY despite the new records being set on Wall Street. EUR/USD returned to the 1.06 handle.

Nikkei and JGBs -

+ N225 closed -0.47% at 19,347.53. 10yr JGBs yield 0.095%.
European FX and News -

+ Disappointed USD bulls continued to head to the exit after the currency's failure to push on yesterday despite a solid set of US data. EUR/USD managed a high around 1.0640 and has not dipped very far.

+ USD/JPY found some initial demand around 113.60 than again just ahead of 113.50 but is not bouncing too far as European equities look heavy after an early bounce was soon reversed.

+ Cable is back on the 1.25 handle with EUR/GBP sticking close to .8500, no data today to stir the pot but retail sales looming on Friday.

+ AUD/USD slipped off the .77 handle late in the session and has allowed NZD and CAD to play a little catch up, although turnover somewhat subdued through Europe so far.

+ All very familiar on EUR/CHF albeit towards the lower end again of the recent range, while after the Riksbank policy decision yesterday EUR/SEK remains tucked in its 9.40/9.50 rang, the NOK steady too after the currently rare move off the 1.06 handle for NOK/SEK was reversed.

Bonds and Equities -

+ Eurozone bond yields have followed USTs lower with risk appetite backing off, while OATs are underperforming slightly after supply came in on the soft side in contrast to Bonos after its supply.

+ Equity rallies are not getting anywhere, Dax down 0.2%, FTSE closer to -0.5%.

Data -

+ Australia: Employment (Jan) 13.5 chg k (Mkt: 10 Prev: 16.3R)

+ Australia: Unemployment (Jan) 5.7% (Mkt: 5.8 Prev: 5.8)

Still To Be Released -

Data:

13:30 GMT - US: Building Permits (Jan) 4cast: 1240k (Mkt: 1230 Prev: 1228)

13:30 GMT - US: Housing Starts (Jan) 4cast: 1220k (Mkt: 1226 Prev: 1226)

13:30 GMT - US: Initial Claims (42777) k (Mkt: 245 Prev: 234)

13:30 GMT - US: Philadelphia Fed Survey (Feb) (Mkt: 18 Prev: 23.6)

Events & Auctions:

11:15 GMT - SE: Riksbank's Ohlsson Speaks in Linkoping, Sweden

13:00 GMT - EU: EU's Moscovici Speaks in Vienna

14:00 GMT - EU: ECB's Coeure Speaks in Maastricht

14:05 GMT - SE: Riksbank's Skingley Speaks in Stockholm

15:00 GMT - EU: ECB's Nowotny Speaks in Vienna

18:00 GMT - NO: Norges' Olsen Speaks in Oslo

18:30 GMT - EU: EU's Juncker Speaks in Munich

21:00 GMT - NZ: 6-Month Fiscal Statement Released

21:00 GMT - NZ: 6-Month Fiscal Statement Released