Forex news for the European trading session 6 June 2017
News:
- Latest YouGov UK election model results show Conservatives 22 seats short of an overall majority
- Macron's party seen winning 29.5% of the vote in French election first round
- UK's Johnson sees no reason to rescind state visit invite offered to Trump
- OECD's Gurria says Brexit process needs to be as smooth as possible
- Australia - RBA announce no change to the cash rate, on hold
- GBPUSD testing 1.2900 support after failure at 1.2950
- A case of rinse and repeat as AUDUSD holds 0.7500 again
- AUDUSD higher after RBA leave rates on hold
- China securities regulator: Firms in belt & road countries should issue Panda Bonds
- Fitch sees no immediate change in Qatar sovereign credit rating
- SNB total sight deposits w-e 2 June CHF 576.062 bln vs 575.973 bln prev
- Forex option expiries for the 10am New York cut 6 June
- Nikkei 225 closes down -0.95% at 19,979.90
Data:
- Eurozone April retail sales mm +0.1% vs +0.2% exp
- Eurozone June Sentix investor confidence 28.4 vs 27.4 exp
- Eurozone May retail PMIs mostly lower
A scrappy morning but one not without opportunity with pound and euro option expiries both in focus.
GBPUSD had an early look at 1.2950 as EURGBP dipped into 0.8700 but found decent sell interest and retreated to test support of its own at 1.2900. EURUSD meanwhile was falling from 1.1270 to spend most of the morning around large expiries at 1.1250.
Yen demand still prevailing on a combo of US/global political uncertainty and weak data and we've seen USDJPY remain on the back foot. Failure to get back over 109.80 has forced further retreat below 109.50 and that yen demand has helped cap core pairs too.
AUDUSD had a look at decent 0.7500 offers/res again after RBA left rates on hold as expected but gave up again and retreated to 0.7465 before finding fresh demand as general USD supply prevailed.
Equities opened in negative territory and remained soggy but oil did have one early spike with WTI posting $47.60 only to return to from where it came at $47.20. No obvious reasons for the spike and retreat. USDCAD has responded accordingly and dipped to 1.3440 only to bounce back to 1.3470 as I type.
Data wise it's been a quiet one so far but we do have US JOLTS and Canadian Ivey to follow with the GDT auction results due for NZ traders too.
