Forex news for European morning trading on July 11 2017
News:
- Pound pops higher as Haldane looms
- Pound freezes as markets play "Where's Andy?"
- S&P not looking for a UK rate hike before mid-2019
- UK's Johnson says Brexit bill from EU is "extortionate"
- Trump reported to be now visiting UK in 2018
- Fed's Williams - more: Reasonable to expect 1 more rate hike this year
- Forsa poll shows Merkel's Conservative coalition with a 17 point lead
- HSBC changes its mind and now expects BOC July rate hike
- IEA says global energy investment in 2016 fell 12% to USD 1.7trln
- China's CIC 2016 net profit USD 75.3bln vs 73.9bln prev
- Australia - lift in wages seen in Q2
- Forex option expiries for the 14.00 GMT cut today 11 July
- Earthquake of 6.8 magnitude off New Zealand's South Island
- Nikkei 225 closes up +0.57% at 20,195.48
Data:
- China June vehicle sales yy +4.5% vs -0.1% prev
- Italy May industrial production mm 0.7% vs 0.5% exp
- US NFIB June small business optimism 103.6 vs 104.4 exp
- Japan June provisional machine tool orders 31.1% vs 24.5% prev
A good session for the pound but all relative in these tight ranges.
Focus was initially on potentially bullish remarks from Haldane but a lack of anything from his own low-key event at the BOE has given way to looking next for MPC colleague Broadbent and a key note speech at 12.30 GMT. Text will be published on the BOE website as he stands up. Previously a dove Broadbent is the last of the current 8 MPC members to speak publicly since the recent 5-3 vote.
The session had begun with some opportunistic stop-triggering in early thin-ish conditions which saw highs of 114.30 taken out and a quick look at the next layer of resistance/offers at 114.50. That pulled up yen pairs and put a bid under core pairs after an early soft start amid general USD demand.
GBPUSD then started it steady ascent with Haldane, Broadbent, and EURGBP expiries all in play and that was enough to rally from 1.2870 to test 1.2920 offers/res. It wasn't long though before another spike from 1.2905 to 1.2928 as EURGBP fell further through 0.8825 only to run into some option-related demand. EUR 2.1bln option interest at 0.8775-80 can not be ruled out if Broadbent disappoints the bears.
EURUSD found itself caught in the cross fire yet again and containing its range within 1.1380-00 while USDCHF took full advantage to test 0.9700 as EURCHF rallied further to post 1.1048.
AUDUSD found support from early AUDJPY demand while USDCAD has once again run into decent demand at 1.2880 but still tightly bound as BOC loom tomorrow.
Little data of note so we'll see if Broadbent and other talking heads can stir things up a bit.
