Forex news for European morning trading on July 12 2017
News:
- BOE's Broadbent says he's "not ready" to raise rates yet
- Trump tweets to say son Donald is innocent
- Barnier says UK must recognize Brexit financial obligations to EU
- EU's Verhofstadt says UK must accept it faces divorce bill
- ECB's Visco says monetary conditions need to remain "expansive"
- IMF says normalization of US Fed policy has proceeded smoothly but risks remain
- Saudi Arabia say they will work closely with other producers to stabilise oil market
- OPEC says 2018 global oil demand to rise 1.26mln bpd vs 1.27mln bpd in 2017
- Fitch says global sovereign outlook improves but high debt remains
- China M2 money supply June yy +9.4% vs +9.5% exp
- Forex option expiries for the 14.00 GMT cut today 12 July
Data:
- UK May average weekly earnings 3-mth/year 1.8% vs +1.8% exp
- Germany June WPI mm 0.0% vs +0.2% exp
- Eurozone May industrial production mm SA 1.3% vs 1.0% exp
- US MBA mortgage applications down -7.4% in w/e 7 July
- Japan May tertiary industry index mm -0.1% vs -0.5% exp
It's been another busy session that saw the pound fall further only to recover its poise but found the euro in steady retreat.
EURUSD failure to break up through 1.1500 in Asia and large option expiries between 1.1425-30 saw the pair in steady retreat from 1.1485 to 1.1442 but has found dip demand defence so far.
EURGBP though has also been sliding after failure to break 0.8950 helped by positive UK jobs data although wages remain a concern albeit with no great downside shocks today.
Dovish/cautious comments from BOE's Broadbent in a Scottish newspaper interview released early in the session saw GBPUSD eventually test 1.2800 from 1.2855 helped by GBPJPY supply too but the UK data and EURGBP selling has seen a recovery to post fresh session/Asian highs of 1.2875 as I type.
USDJPY had found Asian zone support at 113.30 and tried again only to bounce back above 113.50.
Oil steady after yesterday's rally saw USDCAD also biding its time waiting on BOC while AUDUSD and NZDUSD both have been tightly bound.
No key data of note to come but all focus on Yellen's testimony at 14.00 GMT with speech to be published at 08.30 GMT
