Forex news for European morning trading on July 4 2017
HAPPY INDEPENDENCE DAY
News:
- North Korea says Kim Jong Un ordered test of intercontinental ballistic missile
- Australia - RBA announce no change to the cash rate, on hold
- BOE's McCafferty says changing policy would be "prudent"
- BOE FPC Minutes: Concerns over consumer credit risk
- Cable survives a test of recent lows but sellers lurking
- BOC's Poloz says inflation should be well into an uptrend in H1 2018
- China state-owned banks selling USD/CNY (believed intervention)
- Germany's DIHK says a trade war with US can not be ruled out
- Japan's Abe to visit Brussels this Thursday
- Aussie dollar plummets after RBA announcement
- Sweden's Riksbank leaves repo rate unchanged at -0.5%
- More from the PBOC: China's economic downward pressure remains large in 2017
- PBOC to continue with interest rate and exchange rate reform
- Forex option expiries for today 4 July
- Nikkei 225 closes down -0.12% at 20,032.35
Data:
- Eurozone May PPI mm -0.4% vs -0.2% exp
- UK Markit June construction PMI 54.8 vs 55.0 exp
- Spain's jobless falls 2.84% in June mm
It's been a busy session with yen pairs on a rollercoaster ride but USD demand prevailing overall.
News of an ICBM launch by N Korea gave late Asia/early Europe desks the jitters and we saw yen pairs fall in rapid time with USDJPY down to 112.75 from 113.20 and EURJPY down to test 128.00 both leading the way.
That gave an offer to core pairs that saw GBPUSD extend recent losses to 1.2930 then 1.2916 the 28 June lows from the 1.2972 spike highs that day. We've since tried to get back through 1.2950 but without success
EURUSD dropped to 1.1337 from 1.1370 on the EURJPY selling but has since found a bid as yen pairs base and USDJPY rallied back to 113.30
USDJPY 15m
AUDUSD tumbled from 0.7680 to 0.7625 on the RBA statement and has since continued its journey lower to 07590 as USD demand prevails. Large option contract expiries at 0.7700 also impacting. USDCAD had an early dip to 1.2985 from 1.3010 on more hawkish talk from Poloz but rallied back there only to fall again to 1.2975 as oil remained underpinned.
USDCHF enjoyed the ride higher to 0.9658 before running into 0.9660 offers and EURCHF has also remained underpinned despite EUR losses elsewhere.
US markets closed today but we do have Canadian mftg PMI and GDT auction results for NZD traders.
