Forexlive European FX news wrap: Yen demand and pound pressure continue

Author: Mike Paterson | Category: News

Forex trading news and economic data headlines 17 February 2017



It's been all about the yen and pound again this session as concern grows about the ability of Trump and his administration to deliver.

USDJPY began the day capped into 113.50 after lows of 113.15 in Asia and it wasn't long before the tone of yen demand spread across all core pairs capping any further rallies.

As USDJPY retreated so too did GBPUSD with GBPJPY once again a prime mover for hedge funds and algos. From 1.2485 we've been down to 1.2388 helped by dismal UK retail sales data with GBPJPY falling to 139.62 from 141.97.

EURJPY falling to 119.96 meant EURUSD found rallies hard work despite getting some support from EURGBP rallying to 0.8592 having posted 0.8520 in early trading . AUDUSD failed to get back above 0.7700 and has been down to 0.7658 as AUDJPY dropped to 86.33

CHF demand has been less noticeable in USDCHF and EURCHF but both have remained on the back foot while USDCAD has rallies to 1.3100 as CADJPY supply made its impact.

Equities opened in uncertain territory and then headed lower as the risk-off sentiment grew while gold has made a few gains with oil dipping but finding some support as yen pairs also started to bounce off lows.

Nothing on the data front to come to trouble the scorers and with US markets on holiday on Monday we wait to see what appetite NA desks have for any battle today.