Forex news for European morning trading on July 5 2017
News:
- ECB's Coeure says change of policy has not been discussed
- BOJ likely to cut its inflation forecasts in quarterly review of long-term projections
- Kremlin hopes Putin/Trump meeting at G20 will help resolve mounting global conflicts
- Merkel looking for investment treaty with China that leads to full free trade agreement
- Latest Forsa poll has Merkel's Conservatives with a 16 point lead
- China's Bond Connect scheme will support efforts to encourage inflows
- Forex option expiries for today 5 July
Data:
- UK Markit/CIPS June services PMI 53.4 vs 53.5 exp
- Eurozone Markit June services PMI final 55.4 vs 54.7 exp
- Germany Markit June services PMI 54.0 vs 53.7 exp
- France Markit June services PMI 56.9 vs 55.3 exp
- Eurozone May retail sales mm 0.4% vs 0.4% exp
- Italy Markit June services PMI 53.6 vs 54.6 exp
- Spain Markit June services PMI 58.3 vs 57.3 prev
- UK June new car registrations yy -4/8% vs -8.5% prev
Welcome back to our US readers who have been enjoying the extended Independence Day celebrations.
Another session that's seen the greenback feeling the love as we wait on US Fed FOMC Minutes later.
USDJPY led the way up through 113.50 to post 113.69 but EURUSD needed little excuse to fall to. 1.1335 from 1.1370 and then later to 1.1313 in rapid fashion on Coeure's comments that ECB policy wasn't about to change anytime soon. The drop was retraced straight away though as the rest of the comments revealed nothing that we didn't already know.
EURGBP had an early look above 0.8800 and that sent GBPUSD down to test 1.2900 but bounced back into 1.2920 as EURGBP fell back to 0.8780 and then further to 0.8762 as EUR remained undermined. Cable had a low post of 1.2893 in a second wave after slightly weaker than expected services PMI data but it wasn't down there for long as the EURGBP supply helped to support.
USDCHF enjoyed the ride higher to 0.9689 as EURUSD fell and EURCHF remained underpinned against the general EUR trend elsewhere.
AUDUSD opened up on the front foot to 0.7632 but then ran into option expiry related supply and we've retreated to 0.7589. NZDUSD has been in steady decline.
USDCAD has been steady between 1.2935-75 with oil falling to start then running into buyers again. Equities opened generally softer but have improved through the session.
US factory orders the main data risk coming up at 14.00GMT ahead of the main FOMC event at 18.00 GMT.
