Forex news for European morning trading on July 7 2017
News:
- ECB's Coeure says the recovery has finally arrived but unwise "to let our guard down"
- ECB's Knot says reflation has clearly replaced deflation
- IFO's Fuest says now would be a good moment for ECB to start tapering
- G20 Summit: Putin says IMF needs further reforms
- France outlines plans to attract business post-Brexit
- Pound under pressure again after soggy data readings
- Japan's Shirai says BOJ should steadily proceed with "implicit" tapering of bond purchases
- Forex option expiries for the 14.00 GMT cut today 7 July
- China FX reserves end-June USD 3.057trln vs 3.054trln prev
- Switzerland June foreign currency reserves CHF 693.5bln vs 695.0bln exp
- BOJ says households see 2% inflation in 1 year
- Nikkei 225 closes down -0.32% at 19,929.09
Data:
- UK May visible trade balance GBP -11.863bln vs -10.85bln exp
- UK May industrial production mm -0.1% vs 0.4% expected
- Germany May industrial production mm SA 1.2% vs 0.2% exp
- UK Halifax HPI mm -1.0 % vs +0.2% exp
- France May industrial production mm 1.9% vs 0.6% exp
- Switzerland unemployment rate SA 3.2% as expected
- Japan May leading index CI provisional 104.7 vs 104.5 exp
The session began after a rapid rally in yen pairs on BOJ bond buying news and with EUR pairs still feeling the love after yesterday ECB Minute-encouraged advance.
It was the pound though that caught the eye as a combo of weak production and trade data along with that EURGBP demand combine to send the quid lower.
GBPUSD had run into decent offers/res between 1.2980-00 again in Asia and was languishing around 1.2950 when the data sent it tumbling to 1.2916, then wiped its feet at 1.2900 before eventually posting 9-day lows of 1.2888
EURGBP had nudged up from 0.8800 to 0.8815 but then surged through 0.8825 offers/res to post 0.8838. A couple of failed attempts into 0.8850 resistance/offers then followed before a quick jump to post 0.8854.
Meanwhile EURUSD failed into decent supply at 1.1430 and has edged its way back lower despite general EUR demand but with large options at 1.1400 proving magnetic.
Yen pairs have retraced Asian gains but has left USDJPY steady around 113.70 with its own large option interest into 114,00 providing a cap.
USDCHF has happily drifted up to look at 0.9630 from 0.9595 as EURCHF remains supported albeit failing into 1.1000.
AUDUSD has been similarly contained between 0.7580-0.7600 and NZDUSD even tighter between 0.7275-85.
USDCAD has also mostly had the morning off nudging down to 1.2970 from 1.2990 then retracing to 1.2985 as oil dipped and rallied for a few cents.
Equities opened a little softer and remained so but FTSE reversed early losses to post gains as GBP pairs got sold.
All eyes now on the NFPs at 12.30 GMT
