Forexlive European FX news wrap: Oil continues its slick move higher and risk returns

Author: Mike Paterson | Category: News

Forex trading news and economic data headlines 15 May 2017



The news in Asia that Russia and Saudi Arabia support a 9-month extension to the oil output cut deal has continued to make its impact on European desks.

Yen selling was evident from the off as risk and equities firmed and that support ultimately lifted USDJPY to 113.73 from 113.35 with core pairs also rallying.

GBPUSD had found support at 1.2880 in Asia and was soon making its move through 1.2900, then 1.2920 until running out of puff as GBPJPY sellers emerged at 147.00 from the Asian 145.65 lows with equities turning south.

Similarly EURUSD has moved up to 1.0968 after breaking through 1.0950 where large option expiries may yet have the last word later. EURGBP demand below 0.8460 helped be decent GBPUSD sell interest at 1.2950 has helped to underpin the move even if EURJPY has a few sellers around 124.50.

Another big mover of course though has been CADJPY which posted 83.45 from 82.51 with USDCAD falling steadily as oil rose. Lows so far of 1.3615 from 1.3680 and we're still down there as I type.

Equities opened firmer and only to lose their shine but oil has held onto most of its session gains. WTI highs of $49.45 from $48.30 with Brent up to $52.52 from $51.45. Currently $49.12 and $52.18 respectively.

A data-lite day in Europe as often the case on a Monday but do have the May US Empire State mftg index at 12.30 GMT.

Lots going on but FX prices essentially still range-trading so no time to get too carried away this point.