Forex news from European trading - 19 December 2017
- Switzerland SECO Dec 2017 economic forecasts: 2017 GDP seen at 1.0%
- Germany December IFO business climate 117.2 vs 117.5 exp
- IFO's Wohlrabe: Don't read too much into Dec IFO drop
- Eurozone Oct construction output m/m -0.4% vs +0.1% prior
- Eurozone Q3 wages y/y +1.6% vs +2.0% prior
- More from Japan PM Abe: Economic revitalisation important in budget
- More from ECB's Hansson: Expects ECB to adjust communication in 1H 2018
- ECB's Hansson: Important for ECB to change guidance gradually
- BGA trade association: German imports/exports to reach record high in 2018
- Fed's Kashkari: Rate hikes could cause a recession
- MAS cautions against investments in cryptocurrencies
- FX option expiries for the 10am NY cut - 19 Dec 2017
- Investors will do anything to chase after the next Bitcoin
- GS: US tax reform will add tightening pressure to Asian narrative
- Hedge fund managers expect a higher bonus in 2017
- Reuters poll: UK house prices to rise 1.3% in 2018
- NZD leads the way so far, JPY lagging behind the pack
- European equities mixed on the day, Eurostoxx and DAX slightly lower
- Gold is up by 0.08% to $1,263.43
- WTI crude is up by 0.56% to $57.48
- US 10-year yields is down by 0.5 bps to 2.39%
Overall, it was a quiet trading day but there are good pips to be had - especially in cable. Dollar weakness remains a lingering theme as we await the tax bill vote. Only the GBP and JPY are weaker than the USD for today (GBP was initially higher).
Other pairs kept their gains against the dollar and haven't really moved out of range. EUR/USD tested waters at 1.1800 for a while early in the session, and finally broke through eventually. It retraced back a little but 1.1800 held and the pair is higher on the day so far.
The bulk of the action actually came from GBP/USD. The pair was lower in the Asian session then made a run up breaking through the 100 and 200-hour MA all the way to 1.3402. It encountered sellers at the level, and they drove the pair back down to a low of 1.3354. The pair held steady as support levels were nearby, and it is now making taking another crack at the 100 and 200-hour MA on the run up again - as I highlighted here.
Otherwise, it was a quiet session as data points failed to provide any form of spark. ECB's Hansson did come out with some odd comments - saying that he expects the ECB to change their communication in the first half of 2018. Not sure if he meant to say that, as it does add a timeline to the context of the ECB backing away from easing policies. But it's better we wait to hear from the main man (Draghi) himself.