Forex news for the European trading session 13 June 2017
News:
- Germany's Schaeuble says ECB needs to exit current monetary policy in a timely manner
- More from Schaeuble: The ECB has a difficult task
- Jury still out on the pound says latest Reuters poll
- Merkel maintains 14 point lead in latest German election poll
- Spanish PM Rajoy the subject of a no-confidence debate currently underway
- OPEC cuts 2017 non-OPEC oil supply growth forecast to 840k bpd vs 950k bpd prev
- South Korea government and central bank agree to cooperate
- Forex option expiries for the 10am New York cut 13 June
- Nikkei 225 closes down -0.05% at 19,898.75
Data:
- UK May CPI mm +0.3% vs +0.2% expected
- Germany June ZEW current situation 88.0 vs 85.0 exp
- Spain May CPI final mm -0.1% as expected
- Germany May WPI mm -0.7% vs +0.3% prev
A steady session by and large and one that's gone a long way to reverse yesterday's losses for the pound.
Nothing really has changed with the UK political uncertainty still casting a shadow but stronger headline inflation data has helped cement a few gains. At the end of the day we're still range trading so little surprise there is money coming off the table.
EURGBP led the way to start with and has made a steady retreat to 0.8798 after failing to breach 0.8850 and that in turn has lifted GBPUSD from 1.2655 to 1.2736
EURGBP-GBPUSD Mirror mirror on the wall
As equities firmed so risk appetite returned and we saw GBPJPY demand help cable on its way into the inflation data and on the headline CPI we saw 1.1224 from 1.1200 but then a retreat on the softer PPI reality check. It didn't keep the pound down for long though.
The yen selling saw USDJPY rise from 109.95 to 110.27 before running out of puff again and with EURJPY following a similar pattern we seen EURUSD peak at 1.1225 but finding support around 1.1200 still. ECB mon pol chatter from Schaeuble had no impact. Ditto ZEW data with stronger current reading tempered by expectations.
USDCAD has remained on the back foot but rate of decline slowed with oil prices steady but after falling below 1.3300 we've since found support at 1.3260.
AUDUSD and NZDUSD have both once again had narrow ranges but the former narrowly outstripping the latter on losses as AUDNZD falls to 1.0440
US PPI the only data risk of note to come but plenty going on to keep things moving around.
