Forex news from the European trading session - 12 June 2018
Headlines:
- Trump reiterates that he believes North Korea will begin denuclearisation process
- US May NFIB small business optimism index 107.8 vs 105.0 expected
- Trump says will probably need a second summit with Kim
- China May M2 money supply +8.3% vs +8.5% y/y expected
- Germany June ZEW survey current situation 80.6 vs 85.0 expected
- Phillip Lee resigns as UK minister over Brexit fight
- UK April average weekly earnings +2.5% vs +2.5% 3m/y expected
- Trump says US and North Korea are ready to start new history
- Italy Q1 unemployment rate 11.1% vs 11.1% expected
- David Davis says Brexit white paper will come out after 28 June EU summit
- More details on the US-North Korea signed document
- North Korea said to have pledged to work towards 'complete denuclearisation'
- Trump says he's developed a very special bond with Kim
- France Q1 final private sector payrolls +0.2% vs +0.3% q/q prelim
- Japan April tertiary industry index +1.0% vs +0.6% m/m expected
Markets:
- CHF leads on the day, CAD lags behind
- European equities mixed on the day, flattish tones
- Gold down 0.16% to $1,298.40
- WTI up 0.29% to $66.29
- US 10-year yields up by 0.9 bps to 2.96%
- Bitcoin up by 1.21% to $6,843
It is all about the Trump-Kim summit today but in essence, it is something that is blown over proportion by the media more than anything else. The meeting between the two leaders culminated in an agreement to carry forward with further dialogue and North Korea reaffirmed that they would follow through with the Panmunjom Declaration towards a complete denuclearisation of the Korean Peninsula.
However, the lack of details surrounding the two areas failed to offer much excitement as markets has already factored in a positive meeting coming into today.
USD/JPY traded near the highs earlier at 110.40 at the start of the session but slowly gave up gains as the summit offered little details and we're seeing equities in Europe and US futures turn flattish on the day.
Risk assets didn't do much as well, with the aussie and kiwi holding up decently but off the highs earlier in the session - with little catalyst to go on.
Meanwhile, EUR/USD traded to a high of 1.1809 at the start of the session before settling in a range between 1.1780 to 1.1790 currently - as the 1.1800 handle remains a key level to watch out for.
The only other currency that moved quite a bit is the sterling. GBP/USD gained ahead of the UK jobs report earlier, rising from 1.3370 levels to a high of 1.3419. But the report disappointed a little - it was more of a Goldilocks report - and the pair failed to breach the 100-hour MA before coming back down now as Brexit starts to come back into focus with the House of Commons set for a vote on the EU withdrawal bill.
The loonie remains on the back foot, a continuation of yesterday's move with weaker oil prices and the trade spat between Trump and Trudeau still continuing. Trump in his press conference called out Trudeau again, and said that Trudeau's actions would be costly. USD/CAD remains attracted to the 1.3000 level for the time being.
