Forex news for European morning trading on July 13 2017
News:
- ECB's Rimsevics says QE will continue for "a few years"
- Repeal Bill says supremacy of EU law will no longer apply from the day UK actually leaves
- PM May says she was devastated by results of snap election
- UK's Fox says the only obstacle to a good Brexit deal would be politics
- BOE expects banks to reduce lending to UK consumers in coming months
- EURUSD orders 13 July - Option expiries in play again
- AUD and NZD enjoying the ride on USD and EUR supply
- Forex option expiries for the 14.00 GMT cut today 13 July
- IEA say recent oil price weakness may lead US shale firms to reassess
- Russia's Nabiullina says high debt, low inflation are a drag on world economy
- German economy continuing accelerated upswing in Q2
- South Korean CB says geopolitical factors are downside risks to economy
- Nikkei 225 closes up +0.01% at 20,099.81
Data:
- Germany June CPI final mm 0.2% vs 0.2% exp
- France June CPI final mm 0.0% as exp
- China June trade balance USD42.77bn (expected $42.60bn)
- Spain June CPI final mm 0.0% as exp
- Switzerland June PPI mm -0.1% vs 0.0% expected
Another busy session that has seen the euro under pressure again with option contracts once more playing their part.
EURUSD was initially capped by option interest around 1.1450 and came down steadily toward 1.1400 then a quick drop to 1.1376 as ECB's Rimsevics said QE could be around for a few years. EURGBP has been down to 0.8802 from 0.8865 and EURJPY tested 128.50 support before rebounding. Similarly EURAUD and EURNZD have also tumbled given a lift to AUDUSD and NZDUSD.
EURCHF fell to test 1.0980 support and capped the USDCHF advance at 0.9670
GBPUSD tokk full advantage of the EURGBP tumble again to rally up through 1.2920 and post 1.2952 before running into fresh supply while USDJPY found support into 112.85 again but has option related sell interest between 113.20-30 capping rallies.
Update: Talk of WSJ story on Draghi using Jackson Hole speech to herald tapering though has put some bids back under the recently-beleaguered euro as I type.
USDCAD has trawled along around 1.2750 after yesterday's BOC hike despite a dip in oil on an IEA report that output cuts were fading.
Data out today includes US inititial claims but it's Yellen's second half of her HH testimony at 14.00 GMT that catches the eye.
