Forex news for European morning trading on June 28 2017
News:
- ECB's Constancio says Draghi speech was totally in line with policy
- BOE's Cunliffe says inflation from weaker pound gives BOE a more difficult trade-off to make
- ECB's Lautenschlaeger says most recent proposals by US Treasury "are worrying"
- EU Commission says Brexit will force changes in long-term budget
- Merkel's Conservatives extend election poll lead to 17 points
- Option contract expiries for today 28 June
- USDJPY retreats again as yen demand returns
- Nikkei 225 closes down -0.47% at 20,130.41
Data:
- Eurozone May M3 money supply yy 5.0% as expected
- Italy June CPI yy 1.2% vs 1.4% expected
- UK Nationwide June HPI 1.1% vs 0.1% exp
- US MBA mortgage applications index w/e 23 June -6.2% vs +0.6% prev
- Germany May import price index -1.0% vs -0.6% exp
- French June consumer confidence index rises to 108
- Spain May retail sales yy SA 2.4% vs 2.2% exp
- Switzerland UBS May consumption indicator 1.39 vs 1.34 prev
Another busy session has seen further euro gains capped and yen pairs in retreat again.
Bond sellers were out in force again and we saw early euro demand with EURUSD heading up to 1.1389, EURGBP to 0.8880 and EURJPY to 127.86.
As USDJPY failed to breach 112.50 again we saw a retreat to 112.20 then rapid decline with stops triggered down to 111.83 sending EURJPY down to 127.12. GBPJPY also fell from 144.03 to post 143.30 which helped cap cable above 1.2825 after an early look below 1.2800.
Since then we've seen EUR gains again and the pairs appear underpinned again as I type.
EURGBP fell back to test 0.8850 but held and bounced to 0.8870 all leaving GBPUSD in a tight range.
Oil had an early wobble but its steady rally helped push USDCAD down to 1.3076 from 1.3150 with one eye on Poloz appearing at the ECB Forum from 13.30 GMT.
AUDUSD and NZDUSD have both been undermined by EUR cross demand.
Equities opened lower and remained on the back foot.
US Trade balance data at 12.30 the next data risk but all eyes on the ECB Forum that also has Carney, Kuroda and Draghi on the same platform as Poloz.
Should make for an entertaining afternoon.
Draghi speaks again- What will the alogs make of it this time?