Forex news for the European trading session 7 June 2017
News:
- Reports now of 7 dead in Iranian parliament shootings
- Euro pairs under pressure as ECB meeting looms ever closer
- Thursday to bring back a bit of volatility to these lacklustre markets
- RBI leaves repo rate unchanged at 6.25%
- UAE says they hope further steps against Qatar can be avoided
- OECD sees global GDP of +3.5% in 2017 vs +3.3% in previous forecast
- Merkel's expected election victory remains steady at 39%
- China FX reserves end-May USD 3.054trln vs 3.030trln prev
- Switzerland May forex reserves CHF 693.7 bln vs 696.65 bln prev
- More analyst responses to the Australian GDP
- AUDUSD holds post-GDP gains
- Forex option expiries for the 10am New York cut 7 June
- Nikkei 225 closes up +0.02% at 19,984.62
Data:
- Germany April factory orders mm -2.1% vs -0.3% exp
- UK Halifax house price index mm +0.4% vs -0.2% prev
- Italy April retail sales mm -0.1%
- Japan April leading index CI flash 104.5 vs 104.3 exp
A quiet session for the most part but one that's once again see the euro under pressure from a variety of angles.
The biggest move came late in the session as reports started to circulate that the ECB will trim inflation forecasts tomorrow. That in turn would lead to reduced expectations of any tapering and we have seen EURUSD test 1.1200 from 1.1270, EURGBP 0.8682 from 0.8735 and EURJPY 122.63 from 123.50.
All those pairs and the euro generally had been under a little pressure ahead of the ECB meet but these reports accelerated the move at pace. Large option expiries at 1.1200 in play too.
Yen demand has prevailed amidst on-going uncertainties and fresh terror attacks, this time in Iran. New 7-week lows of 109.12 have been partially reversed to 109.42 though as some USD demand returned.
GBPUSD has been far better behaved and pulled around in a tight range 1.2890-1.2920 by a mix of EURGBP and GBPJPY supply. Tomorrow's UK election continues to have traders playing a cautious hand understandably.
USDCHF has rallied to 0.9678 from 0.9620 as EURUSD tumbled and EURCHF holds above 1.0840 while AUDUSD held and improved on its post-GDP rally to post 0.7567 from 0.7535
Equities opened softer but have rallied on the ECB expectations/inflation reports while oil has traded tightly and left USDCAD stuck in its own tight range of 1.3430-60 after early falls but late session rally.
Little to come on the data front but there's enough else going on to keep the opportunities coming.
