Forex news for European morning trading on June 26 2017
News:
- May and Foster sign deal to support Conservative minority government
- PM May welcomes agreement with DUP that gives the certainty required to embark on Brexit process
- DUP welcomes the additional GBP 1bln for Northern Ireland
- Juncker's advisor says EU will "call the shots" in Brexit talks
- Gold turning lower again after early tumble
- US Fed's Dudley says recent easing of financial conditions another reason to tighten policy
- US Fed's Powell repeats that Fed is reassessing Volcker Rule implementation
- EU's Moscovici says Europe has found new momentum
- China's Xi says quality of statistics will be improved to accurately reflect regional growth
- Bundesbank says private consumption important pillar of growth
- SNB total sight deposits w-e 23 June CHF 578.25 bln vs 577.44 bln prev
- GBPUSD drops to test 1.2700
- Forex option expiries for the 10am New York cut 26 June
- Nikkei 225 closes up +0.10% at 20,153.35
Data:
- Germany June IFO business climate 115.1 vs 114.5 exp
- UK BBA May mortgage approvals 40.347k vs 40.250 exp
- Spanish PPI rises in May
- Switzerland Q1 current account surplus rises to CHF 11 bln
- Japan April leading index CI final 104.2 vs 104.5 exp
A session that started relatively quietly sparked into life when gold plummeted from $1255 to $1238 in rapid time. Similarly yen pairs found a bid as risk-on sentiment prevailed with equities also in positive territory.
GBPJPY posted highs of 142.25 and EURJPY tested 125.00 lifting core pairs to 1.2760 and 1.1209 with USDJPY taking out 111.50 and climbing to 111.73.
Pound pairs were helped by talk of an imminent deal between May and the DUP but ran out of steam prior to the announcement was made and posting 1.2706 with EURGBP back up to test 0.8800 from lows of 0.8773. With the deal signed we've seen a little support back for GBP but caution still prevailing given the tiny majority it gives her and the Queen's Speech still to be passed on Thursday.
USDCHF had rallied from 0.9685 to 0.9730 on the general USD demand as EURUSD fell back to 1.1173 and EURCHF climbing to 1.0880 after holding 1.0850. SNB smoothing can not be ruled out.
AUDUSD retreated from 0.7590 to 0.7570 as gold fell but has been stable since while USDCAD has traded 1.3230-60 with oil also in decline.
Equities opened firmer and have remained in buoyant mood.
US durable goods the data risk at 12.30 GMT then Draghi up to the mic around 17.30 GMT
