Forex news for European morning trading on July 31 2017
News:
- Free movement of EU citizens to UK will end in March 2019
- Kremlin says its reduces US diplomatic presence in Russia
- Abe and Trump agree further action on North Korea
- Aussie fails to hold above 0.80 ahead of RBA
- OPEC deal under scrutiny as oil analysts turn more bearish
- Link between employment and inflation continues to elude
- Forex option contract expiries for 31 July
- Comments from PBOC assistant governor
- China's fund managers cut their suggested equity exposure to 75% for next 3 months
- NZ Govt confirms second farm contaminated with disease
- Preview BOJ core CPI due Tuesday
- Reuters poll on Japan fund managers
- BoE meet this week - preview
- SNB total sight deposits w-e 28 July CHF 579.1 bln vs 579.1 bln prior
- Snapshot of the Australian economy
- SNB earnings in H1
- Macquarie bank see RBA talking down AUD
- USDJPY jumps higher as European desks get underway
- Nikkei 225 closes down -0.17% at 19925.18
Data:
- Eurozone July core CPI yy provisional 1.2% vs 1.1% exp
- Eurozone unemployment rate (June): 9.1% vs 9.2% exp
- UK mortgage approvals (June): 64.684k vs 65k prior
- German retail sales (June): 1.1% m/m vs 0.2% exp
- Italian CPI (June): 1.1% vs 1.0% exp
- Italian unemployment rate (June): 11.1% vs 11.3% exp
- China June services trade deficit USD - 29.5bln
- Italian PPI (June): 3.1% y/y vs 3.1% prior
- Japan June construction orders yy 2.3% vs -0.5% prev
- Japan housing starts for June 1.003m vs 0.987m exp
- Japan vehicle production for June 6.9% y/y vs 5.5% prior
A busy session to greet the end of one month and the dawn of another.
Early Euro weakness saw EURUSD dipping to test 1.1720 support but then decent EZ core CPI data saw a spike back above 1.1740, a move that also saw EURGBP retest 0.8960 and EURJPY 130.00. Failure to breach any of those levels though has seen renewed EUR supply in most cases.
For EURCHF though we've seen another strong rally/CHF selling after a move down to 1.1435 which has been followed by a retest of 1.1400 before failing again. USDCHF made the most of some general USD demand to post 0.9713 from 0.9675 before it too ran out of the steam.
EURCHF enjoying some good two-way business
Expected month-end EURGBP demand may well be preventing too much of a dip in that pair but GBPUSD had a quick look around 1.13100 on the EURGBP spike before both reversed those moves to post 1.3128 and 0.8936.
AUSDUSD failed into 0.8000 again and NZDUSD likewise into 0.7520 while USDCAD has traded tightly around 1.2450.
Gold has remained underpinned, while oil has fallen with USD demand and equites made a few gains.
Don't forget it's month-end and that can bring its own volatility particularly into the 15.00 fix.
Data coming up;
