Forex news for the European morning trading session 5 Sept 2017
Featured post: All eyes and ears on Central Banks for the rest of 2017
News:
- North Korea says the recent self-defence measures are a "gift package" for the USA
- France says the risk of a major escalation can not be ruled out in Korean peninsula
- Putin says North Korea will not drop nuclear programme unless it feels secure
- Australia - RBA announce no change to the cash rate (as expected)
- RBA's Lowe says stimulatory policy continues to be appropriate
- Russia and Saudi Arabia have discussed extension of OPEC/non-OPEC output deal
- Forex option contract expiries for today 5 Sept
- AUDUSD still making its mind up after RBA announcement
- Yen Losing its Haven Sheen to Gold on North Korea
- Trading ideas for the European session 5 Sept
- Nikkei 225 closes down -0.63% at 19385.81
- ForexLive Asia FX news wrap: Strong Australian data ahead of RBA
Data:
- UK August services PMI 53.2 vs 53.5 exp
- Eurozone July retail sales mm -0.3% vs -0.3% exp
- Eurozone Markit August services PMI final 54.7 vs 54.9 exp
- Germany Markit/BME August services PMI final 53.5 vs 53.4 flash
- France Markit August services PMI final 54.9 vs 55.5 flash
- Italy Markit August services PMI 55.1 vs 56.3 prev
- Switzerland August CPI mm 0.0% as expected
- Spain Markit August services PMI 56.00 vs 57.6 prev
- Switzerland Q2 GDP qq 0.3% vs 0.5% exp
- India Nikkei/IHS/Markit Aug services PMI 47.5 vs 45.9 prev
It's not been a session of extreme ranges but on-going NK tensions are creating a fragile and ever-fickle market.
Both USDJPY and USDCHF had seen falls again in Asia but were both finding some demand as Europe got underway. Rallies of any note however were difficult to come by but we did see 109.55 from 109.28 and 0.9614 from 0.9580 before retreating on further NK-related rhetoric.
Meanwhile EURUSD was feeling a little heat from a combination of softer PMI readings and EURGBP sellers defending large option expiries at 0.9200. We've seen lows of 1.1868 and 0.9170 so far and that latter pair's move lower has helped underpin GBPUSD into 1.2900 after a PMI-led dip to 1.2909. The subsequent rally has posted 1.2965.
EURGBP 15m
AUDUSD had a muted response to the RBA decision to hold rates as expected along with some more "A$ strength a concern" jawboning. We've largely traded 0.7965-85 since finding support at 0.7950
USDCAD also traded tightly 1.2385-1.2410 but on the back foot as oil prices firmed with WTI rising from $47.70 to $48.27
US Fed's Brainard due to speak shortly and US factory orders the data highlight at 14.00 GMT but it's NK casting the shadow still.
