Forex news for European trading on June 15, 2017
- Bank of England holds rates at 0.25% as expected, but 5-3 vote a big surprise
- Full text of the BOE statement June 15, 2017
- SNB leave key rates on hold
- SNB's Jordan says expansionary policy remains necessary to ensure price stability
- SNB says they will remain active in FX market as necessary
- Jordan: It's hard to predict whether "astoundingly" low inflation in advanced economies will continue
- Eurozone April trade surplus 19.6B vs 22.0B expected
- May UK retail sales -1.2% vs -0.8% m/m expected
- France May CPI final mm 0.0% vs 0.1% exp
- China May FDI drops -3.7% to 54.67 bln yuan yy
Markets:
- Gold down $4 to $1256
- Brent crude down 20-cents to $46.80
- FTSE 100 down 1.2% to 7387
- UK 10-year yields up 8 bps to 1.007%
- GBP leads, NZD lags
The underlying story is a continued bid in the US dollar that has extended from the Fed decision. That was slowly chipping away, especially at GBP and EUR as European trading ramped up. The pound fell further on the retail sales data.
But the BOE had a surprise as two voters joined Forbes to dissent and that sent cable 100 pips off the lows.
Outside of the pound, the bid in the US dollar has continued as New York begins to roll in. USD/JPY had been stubbornly low, partly due to risk aversion in stocks, but it finally caught a bid in the past 30 minutes and is up above 110.00.
USD/CAD is higher for the first time in a week, climbing 30 pips and nearing 1.3300.
