Forex news for European morning trading on June 16 2017
News:
- Hammond says UK will take pragmatic approach in Brexit talks
- Tsipras says there is no room for complacency
- Why the latest MPC vote doesn't mean a rate rise anytime soon
- BOJ's Kuroda says they will adjust policy as needed
- More from Kuroda: Japan's economy growing well but inflation not high
- More from Kuroda (2): US rate hikes don't necessarily mean higher Japanese rates
- Economists sees RBNZ keeping rates on hold at 1.75% on 22 June
- China will give greater incentives for green finance
- Forex option expiries for the 10am New York cut 16 June
- Nikkei 225 closes up +0.56% at 19,943.26
Data:
- Eurozone May CPI mm -0.1% vs -0.1% expected
A scrappy session that's seen yen selling as the main theme overall but we've seen some euro and Aussie $ demand too.
Slightly dovish comments from Kuroda at his presser sent USDJPY to 2-week highs 111.38 from 111.15 before falling back to the same areas but then it's been notably steady since and moved back to 111.42 with GBPJPY, EURJPY and AUDJPY leading the way.
That GBPJPY demand has helped temper losses on GBPUSD as EURGBP demand put a cap on cable above 1.2775 and we've seen a drift into 1.2760. Large option expiries lurking at 1.2750 and 1.2700.
EURUSD has large option interest of its own in play and we've seen similar containment with the early rally capped at 1.1184 and now retreating with equities generally firmer from the off.
AUDJPY demand helped AUDUSD back up through 0.7600 from 0.7580 while USDCAD has drifted off from 1.3270 to 1.3230 with CAD demand in play again.
Still no word from BOE on when Carney's Mansion House speech might be released and May's talks with the DUP continue with EU officials saying Brexit talks will start in Brussels on Monday.
Data wise here's the slate:
