Forex news for the European trading session 9 June 2017
News:
- Conservatives set to win 318 seats with 646 results now in
- BBC says Conservatives are no longer able to win an outright majority
- UK PM May to ask to form a government
- Labour Party will put themselves forward to form a minority government
- Corbyn says Labour Party ready to serve the country
- JP Morgan say Britain may need to ask for delay to Brexit process
- EU Commission's Oettinger says he's now unsure that Brexit talks can start on time
- EU's Juncker hopes UK will stay ready to open Brexit negotiations
- EU's Barnier says "negotiations should start when UK is ready"
- UKIP leader Nuttall resigns in wake of a very soggy showing
- UK Election: Conservatives win Stoke-on-Trent South from Labour
- ECB's Nowotny says they have made " homeopathic" changes to its guidance
- More from Nowotny: Expects ECB to discuss tapering in July and September
- Macron's party forecast to win 31.5% of seats in French election first round
- BUBA's Weidmann says German Debt/GDP ratio may fall below 60% in 2019
- BOF see French 2017 GDP +1.4% vs +1.3% previous forecast
- Forex option expiries for the 10am New York cut 9 June
- Nikkei 225 closes up +0.52% at 20,013.26
Data:
- Germany April trade balance EUR 18.1bln vs 23.0bln exp
- UK April industrial production mm +0.2% vs +0.7% exp
- UK April visible trade balance GBP -10.383bln vs -12bln exp
- France April industrial production mm -0.5% vs +0.2% exp
- Japan April tertiary industry index mm +1.2% vs +0.5% exp
It's been a busy session which was expected and there's been opportunities galore.
Too many ups n downs to list ( just take a look at your 5 min charts) but GBPUSD kicked off by kicking lower as European desks opened up and it wasn't too long before we saw 1.2635 from 1.27 and then some up n down before it emerged that May had done a deal with the DUP and is currently meeting the Queen to ask to form a govt. Cue a rally to 1.2780.
Markets still not quite understanding the soft/hard Brexit impact and focussing mainly on the political. Lots of noise from the EU about UK being ready to start Brexit talks and whether a delay needs to be considered. Pound pairs generally have followed as similar pattern.
Meanwhile we had a further euro retreat in the wake of softer ECB tones and firmer equities and EURUSD has fallen to 1.1170 from 1.1215 helped by EURGBP falling back to 0.8754 from 0.8860 highs. Quite a move and one that's offered up good pips. Large option expiry interest nearby should help support though.
Other pairs have been less interesting with USDJPY and USDCHF both underpinned, the latter helped by the EURUSD fall. Both have sellers lurking though.
USDCAD , AUDUSD and NZDUSD all had the day off and traded tightly.
Data wise it's Canadian jobs that grab the eye at 12.30 GMT.
It may be Friday ( Hurrah!) but the week is a long way from being over just yet.
