Forex trading news and economic data headlines 3 May 2017
News:
- Davis says UK will not be paying €100bln for Brexit divorce payment
- More from Davis on Brexit: It's not for EU negotiators to decide how the whole thing works
- The main person dealing with Michel Barnier over Brexit will be me says UK's Davis
- EU: Both EU and UK citizens must enjoy same rights based on EU law after Brexit
- EU's Barnier: The ECJ is competent enough to guarantee citizens rights
- I will not get involved in UK politics says Barnier
- Pound comes in for some early attention as European desks stir
- Pound largely unfazed after babble from Barnier
- China expects cross-border capital flows to become more balanced
- German March engineering orders yy -4% in real terms
- Forex option expiries for the 10am New York cut 3 May
- AUD extending its losses, AUD/NZD selling continues
Data:
- Q1 2017 Eurozone GDP flash 0.5% vs 0.5% exp q/q
- Eurozone March PPI mm -0.3 % vs -0.1% expected
- April 2017 UK construction PMI 53.1 vs 52.0 exp
- Germany April unemployment change -15k vs -11k exp
It's been all about Brexit this morning with both the pound and euro reacting to press reports and subsequent headlines.
How much will the UK pay to leave the EU? We're still to find out after EU chief negotiator Barnier set out his stool on opening strategy and negotiating guidelines. A quick flick through the first few links above will give you some idea of the hot air and handbags being thrown around currently.
GBPUSD failed to breach 1.2950 in Asia and with the Brexit rumblings it didn't take too long for traders/bots removing some money from the table. After wiping its feet around 1.2910 we then took out bids/support at 1.2900 and were soon testing the next line into 1.2880 with EURGBP rallying to 0.8472.
With those lines holding though it was time for the euro to have a wobble with EURCHF looking soft to retreat below 1.0800 and EURGBP come down to test support/bids between 0.8435-40.
EURUSD has large option expiry interest today nearby and that's helped contain range on the pair around 1.0910 after moving down from 1.0930 in early trading.
USDJPY has held gains above 112.00 but not making much progress higher while USDCHF came lower to 0.9891 on the EURCHF sales but once again has found dip demand.
AUDUSD was also another target with NZ-data led AUDNZD selling adding to the general US$ demand helping to knock the pair down to 0.7473 after wiping its feet at 0.7500. USDCAD has capped with oil firming a little.
Brexit may have grabbed the headlines but we have US ADP jobs data at 12.15 GMT then ISM readings before the FOMC at 18.00 GMT albeit with a widely expected no change decision with no presser.
