Forex news for the European morning trading session 4 Sept 2017
US and Canadian markets closed for the Labour Day holiday
News:
- BRICS strongly deplore North Korea nuclear test but call for solution through peaceful means
- China calls on all sides to remain calm over North Korea
- Germany and France to ask EU to consult on new sanctions against North Korea
- Former board member Kiuchi says the BOJ already retreating from radical monetary stimulus
- Mersch says trust in ECB only gradually returning
- PM May says UK ready to intensify Brexit talks with EU
- UK interest rates not going to rise until 2019 - BBC survey
- China bans financing from Initial Coin Offering issuance
- IEA repeats that Hurricane Harvey impact not needing release of oil stocks currently
- Taiwan's premier Lin Chuan offers resignation
- Bank of Thailand says it is to allow investors to invest more abroad
- Volkswagen & China partner to recall 1.8 million vehicles - fuel pump issue
- ForexLive Asia FX news wrap: How was your weekend? North Korea tested a H-bomb.
- Forex option contract expiries for today 4 Sept
- Nikkei 225 closes down -0.93% at 19508.25
Data:
- Eurozone July PPI mm 0.0% vs 0.1% exp
- UK August construction PMI 51.1 vs 52.0 exp
- Eurozone Sentix September investor confidence 28.2 vs 27.0 exp
- Spain August net unemployment mm 46.4k vs 12.0k exp
A quieter session than we've had lately as markets remain cautious post-NK reported H-bomb test and with US/Canadian markets out for Labour Day.
USDJPY and USDCHF both opened up off Asian opening-tumble lows but have had mixed p/a since with USDJPY just starting to make progress above 109.60 but USDCHF still struggling in a 0.9560-0.9600 as CHF-preferred safe-haven flows prevail. CHJPY duly up to 114.60 from 114.00'
USDCHF 15m
USDJPY 15m
Meanwhile lots of NK-related rhetoric and euro pairs finding dip demand which has seen EURUSD up to 1.1922 from 1.1890 EURGBP 0.9219 from 0.9190 and EURJPY 130.71 from 130.20.
The EURGBP demand sent GBPUSD down to 1.2930 from 1.2950 along with a little early GBPJPY supply but the former's retreat has seen 1.2957 being posted again as I type.
AUDUSD and USDCAD have been reason ably well behaved in ranges of 0.7945-70 and 1.2385-1.2422 respectively.
Equities opened on the back foot as did gold and oil but little further notable declines as markets wait to see whether the latest NK developments escalate or recede this time.
No data to come given the US/Canada Labour Day hols.
