Forex news from the European trading session - 12 July 2018
Headlines:
- Trump says that allies have commited to raise defense spending beyond 2%
- Fed's Mester says that strong economy justifies two more rate hikes this year
- European Commission cuts 2018 Eurozone growth forecast to 2.1% from 2.3%
- Eurozone May industrial production +1.3% vs +1.2% m/m expected
- BOE says that Q2 default rates on unsecured lending rose
- IEA says that OPEC output may be stretched to the limit by supply crises
- China says that US accusation on China's IP theft is groundless
- UK Brexit minister Raab says will speak to EU's Barnier later today
- UK foreign secretary Hunt says he expects "very, very lively debate" on Brexit white paper
- France June final CPI 0.0% vs +0.1% m/m prelim
- Germany June final CPI +0.1% vs +0.1% m/m prelim
Headlines:
- AUD leads, JPY lags on the day
- European equities higher in trading so far
- Gold up 0.18% to $1,244.17
- WTI crude up 0.80% to $70.94
- US 10-year yields up 1.5 bps to 2.864%
- Bitcoin down 2.82% to $6,175
The moves in the FX market so far today has been relatively subdued to say the least. The fact that EUR/USD sits in a 24 pips range basically highlights the entire session for you. The only notable mover on the day has been the yen, which has continued to move lower as markets stocks post gains and risk sentiment recovers from yesterday's sour mood.
Apart from that, break of key technical levels such as that in USD/JPY is also adding to the move.
The session started off with mixed tones and narrow ranges and pretty much stayed that way for all the rest of the major currencies. EUR/USD and GBP/USD both continued to stay below the 200-hour MA level, with traders keeping one eye on the US June CPI report later. And they both also traded narrowly alongside the other major currencies as well.
USD/JPY started off the session near the 112.20 levels but steadily progressed to near session highs currently as US equity futures hold steady and European stocks also extend gains - US yields are also pushing higher.
The aussie is holding up well since the Asian session after posting a recovery then but has barely moved thereafter. Same goes for the loonie and the kiwi. It was pretty much a typical summer-time trading session in Europe.
There was some elevated tensions with regards to the NATO summit late on, but it proved to be very much a storm in a teacup more than anything else.
All eyes now shift towards the US CPI report due at 1230 GMT.
