Forex news for European morning trading on July 20 2017
News:
- EU's Barnier says Brexit talks waiting on UK to clarify commitments
- Pound under pressure again despite better retail sales data
- UK trade minister says May to likely be in power for remainder of term
- UK's Fox says it's very important to keep US interested in open free trade
- ECB Preview : Will Draghi & Co throw any more light on tapering timing today?
- BOJ's Kuroda says FY2019 GDP will slow slightly due to capex and sales tax
- More from Kuroda: BOJ will continue to promote powerful monetary easing to achieve 2% price target
- More from Kurdoda (2): Regrettable to push back timing of reaching 2% price target
- More from Kuroda (3): It's important for prices to rise in tandem with wages
- Even more from Kuroda: BOJ ETF holdings are small proportion of overall equity
- Germany issues revised travel guidance for Turkey
- Jury out on Trump according to latest Reuters/IPSOS poll
- Forex option contract expiries for today 20 July
- USD demand notable as DXY rallies strongly
- Nikkei 225 closes up +0.62% at 20,144.59
Data:
- UK June retail sales mm +0.6% vs +0.4% exp
- Eurozone May current account SA EUR 30.1bln vs 23.5bln prev
- Germany June PPI mm 0.0% vs -0.1% expected
- Switzerland June trade balance CHF 2.81bln vs 3.39bln prev
- Japan June convenience store sales yy -0.1% vs 1.0% prev
- Japan all industries activity index -0.9% vs -0.8% exp
Another busy session that has my typing fingers once more seeking a larger ice bucket but the pound that's needed rescuing more despite better UK retails data..
ECB in focus though and after an early euro wobble we've seen some decent dip demand most notably EURGBP as the pound tumbles.
Pound pairs had seen a sell-off into the data with GBPUSD tumbling to 1.2980 from 1.3020 and EURGBP 0.8865 from 0.8835 only to see those moves reversed after better than expected/previous readings.
One piece of data doesn't make an economy though and with Brexit concerns rearing up again we've seen further falls to 1.2933 with EURGBP rallying further to test 0.8900.
EURUSD fell to 1.1495 from 1.1520 but has generally traded around 1.1500-05 with EURJPY trading mostly higher as USDJPY continued its post-BOJ rally to post 112.42.
USDCHF has risen to 0.9600 from 0.9560 with EURCHF demand taking it back up to 1.1037 from sub-1.1000.
General USD demand has prevailed with DXY rising at fastest daily % pace since 3 July. Equities firmer and oil steady but gold in retreat to $1236 on the firmer US$.
That has added to the AUDUSD retreat from 0.7991 in Asia to post 0.7898 while USDCAD has nudged higher to 1.2642 before falling back.
US initial jobless claims on the data card but it's the ECB and Draghi that will grab the headlines.
