Forexlive European FX News 9 May: Oil up, USD early demand, US 10yr yields break 3%
Economic news 9th May 2018
- Bank of Italy: expect March industrial production data to show recovery...
- BOE: Don't expect the BOE to rescue the GBP
- Iraq lifts oil production at ENI'S Zubair field....
- EUR/USD slide to help European manufacturers
- EU still set to remain committed to Iran nuclear deal
- EUR/USD some bids off lows after Italy retail sales
- Russia: still committed to Iran nuclear deal
- Italy March retail sales m/m -0.2% vs 0.0% expected
- Iranian parliament set to vote on reciprocal action following US withdrawal of nuclear deal
- France data miss no help to Euro...Italian retail sales next
- AUD/USD breaking lower...
- US 10-year yields climb back above 3%
- WTI crude oil breaks above $71 for the first time since November 2014
- Europe's oil and gas SXEP index and sector's gainers: up 1.3%
- Eurozone money markets now price in 75% chance of 10bps rate hike by June 2019
- Europe's Stoxx 600 up 0.07%
- Spain March industrial production m/m +1.2% vs -0.1% expected
- USD pushes higher on the day
- France March Industrial production m/m -0.4%vs 0.4% expected
- EUR/USD down to session low of 1.1835, what levels to look out for next?
- More pain for the Euro...?
- Iran's revolutionary guard: Europeans too closely allied with America
- Mike Pompeo says North Korea has been a good partner in the making
- French economy minister Le Maire says will speak to Mnuchin this week on Iran sanctions
- Aussie bonds looking glum: ignoring Aus budget day
- Eurostoxx futures +0.2% in early European trading
- Nikkei 225 closes lower by 0.44% at 22,408.88
- Iran army chief : biggest damage of deal was negotiating with America
- Key FX option expiries for the remainder of the week
- French foreign minister says Iran deal is "not dead"
- UBS: Iran's oil exports to fall in next 6 months
- Iran's Parliament speaker on the wires....
- US yield curve is flattening, but China's curve is steepening
- FX option expiries for the 1400 GMT cut - 9 May 2018
- Japan March preliminary leading indicator index 105.0 vs 105.1 expected
- SNB gauge suggests that CHF is at a 7-year low against the EUR
- DXY down 0.05% at 93.07
- US 10 year yields up 0.89% at 3.0023
- FTSE 100 up 0.59% 7610.12
- Bitcoin -0.87% at 9155
- Gold -0.42% at 1308.97
- Oil US crude +2.51% at 70.79
This session has been a continuation of the reaction to Trump's Iran nuclear deal withdrawal. Oil has surged over recent Hughs and WTI US crude hit a peak of 71.12 during the session. The EU, Germany, and France have all been on the air waves urging Iran to stick to the deal. Iran has been on the air waves at the end of the session showing their annoyance, but crucially have not ruled out negotiating. European oil equities up on trading bearing supported by the rising oil prices.
At the same time US demand shows no signs of abating with the USD/JPY heading up towards 110. The 10 year yields broke over 3% again and the Dollar Index is currently 93.15. Dollar looks set to continue its grind higher making new lows against the EUR and AUD during the session.
More bad news for the EURO with data out from France , Italy and Spain. Italy saw a surprise uptick in their YoY retail sales to +2.9%. However, that just provides fuel for selling EUR rallies with the market bearish after the soft Q1 data.
The Bank of England due to have their rate meeting tomorrow and the consensus view is that pretty much regardless of what the BOE say tomorrow, the GBP remains in a medium term bearish outlook.