ForexLive European FX news wrap: UK real pay sees first increase in more than a year
Forex news from the European trading session - 15 May 2018
- Eurozone March industrial production +0.5% vs +0.7% m/m expected
- Germany May ZEW survey current situation 87.4 vs 85.5 expected
- Eurozone Q1 GDP second reading +0.4% vs +0.4% q/q prelim
- UK March average weekly earnings 3m/y +2.6% vs +2.6% expected
- Switzerland April PPI +0.4% vs -0.2% m/m prior
- BOJ's Kuroda: Cutting 2% inflation timing forecast is not linked to side effects of easing policy
- France April final CPI +0.2%vs +0.1% m/m prelim
- BOJ's Kuroda says that there are various uncertainties on inflation
- Germany Q1 preliminary GDP +0.3% vs +0.4% q/q expected
- Japan March tertiary industry index -0.3% vs -0.2% m/m expected
- CFTC looking towards drawing the line on ether
- NZD leads, JPY lags on the day
- European equities mixed on the session
- Gold down by 0.31% to $1,309.46
- WTI up by 0.70% to $71.46
- US 10-year yields up by 1.5 bps to 3.017%
- Bitcoin down by 1.15% to $8,710
Despite the glaring headline, movement in the currency market remains subdued for the most part in the session. Cable was trading at 1.3530 prior to the report and the release saw it jump up to 1.3540. The pair subsequently pared gains before making a run higher to 1.3555 on the day, but is now settling back near 1.3540 again.
Real wages (ex-bonus) may have outpaced inflation in Q1, but with April's inflation report due next week it's surely no time for the market to get ahead of itself. Particularly when the data points here all met expectations - leaving little room for a bias on either side.
Cable continues to be tied to the confluence of moving averages as pointed out here, with support and resistance on either side of the figure level at 1.3500 and 1.3600 respectively.
Other than that there hasn't been much else of notable action in the session. Dollar remains steady as US yields hold above 3% and that is helping to underpin yen pairs as well on the day.
That aside, NZD/USD fell to a low of 0.6892 early in the session but has since recovered to stay around 0.6910-20 range for the most part. Meanwhile, AUD/USD remains tied to the magnet of large expiries at 0.7500 today and tomorrow.
Looking ahead, US retail sales is set to provide the next point of contention in the market in terms of directional bias. The data is scheduled for 1230 GMT.