Forex trading news and economic data headlines 12 May 2017

News:

  • ECB's Lane says Brexit is "definitely negative" for Ireland
  • Something has to happen in 2017 given a need to plan for next year Says ECB's Lane
  • China says economic talks with the US stabilises world expectations
  • US Treasury Sec Mnuchin is very happy with US/Chinese trade measures
  • BOJ's Kuroda: Price rises have been slow recently
  • BOJ's Harada: There is still some way to go to achieve 2% inflation target
  • 2% inflation target is a much more important target than the bond target says BOJ's Harada
  • More from Harada: BOJ has to be very careful about exiting ultra-easy monetary policy
  • BOJ's Amamiya expects 2% inflation target around FY 2018
  • IMF's Lagarde says there is not enough clarity yet on the Greek debt relief package
  • More on PBOC skipping OMOs but injecting longer-term liquidity
  • Australia keeps its top rating from Fitch
  • Forex option expiries for the 10am New York cut 12 May

Data:

  • Eurozone March industrial production mm SA -0.1% vs +0.3% exp
  • Germany April CPI final mm 0.0% as expected
  • Germany Q1 GDP qq SA flash +0.6% vs +0.6% exp
  • France Q1 Non Farm Payrolls qq flash +0.3% vs +0.2% exp
  • China April M2 money supply yy +10.5% vs 10.8% exp
  • Spain April CPI final mm +1.0% as expected

Patience is a virtue they say and today it seems ;like markets are patiently waiting for US CPI and retails data to light a fire under price action.

There's been a little bit of opportunity for those keen/hungry/desperate enough to go looking for it but certainly greed will not have been good given the limited ranges.

Failure to get back above 1.2900 in Asia has seen a retreat to post weekly lows of 1.2846 but decent support around 1.2850 still holding for the moment after a brief bounce to 1.2875. EURGBP stalled at 0.8450 from 0.8435 but the generally softer pound tones finally took it through to post 0.8464.

EURUSD meanwhile was treading water around 1.0870 after an early dip to 1.0856 with some EURJPY supply matched by EURGBP demand. We're currently pushing on 1.0877 session highs again as I type.

USDJPY had an early dip to 113.56 from 113.65 but has since edged its way back to the heady heights of 113.80.

AUDUSD had a look at 0.7400 again where large-ish options there seem to be making an impact and we're currently retreating again.

USDCHF has had the morning off around 1.0075 underpinned as EURCHF demand continues and rallies to post 1.0963.

USDCAD broke up through some sell interest at 1.3710 possibly protecting option expiries at 1.3700 and triggered stops to 1.3725 with highs of 1.3732.

A mixed start to European equities but positive territory since, albeit nothing too notable.

It's US CPI and retail sales data at 12.30 that the markets are waiting for though.