Forex trading news and economic data headlines 11 May 2017

News:

  • BOE MPC Preview: Why Carney & Co will show caution today
  • Are there any more worms ready for turning at the BOE?
  • Pound wobbles on softer data but it's all about the BOE today
  • ECB's Praet says raising rates would counter bond purchases
  • EU's Moscovici says core inflation is not moving a lot
  • SNB's Jordan says monetary policy normalisation globally would help Switzerland
  • EU Commission raises 2017 Eurozone GDP forecast to 1.7% vs 1.6% prev
  • BOF's Villeroy says he expects French exports to rebound in 2017
  • Consensus among OPEC/non-OPEC is to extend output cuts for 6 months
  • G7 finance ministers and central bankers meeting begins today
  • RBNZ Assistant Gov. McDermott says markets are ignoring downside risks
  • China's Xi says he is willing to continue working hard for peace and prosperity on Korean peninsula
  • China seriously concerned by US putting it on an intellectual property watchlist
  • Mark Mobius says low market volatility is because of social media
  • Forex option expiries for the 10am New York cut 11 May
  • Nikkei 225 closes up +0.31% at 19,961.55

Data:

  • UK March visible trade balance GBP -13.441 bln vs - 11.6bln exp
  • March 2017 UK industrial production -0.5% vs -0.4% exp m/m
  • Germany April wholesale price index mm +0.3% vs 0.0% prev
  • Switzerland April CPI mm +0.2% as expected
  • China April vehicle sales yy -2.2% vs +4.0% in March

It's all eyes on the BOE at the top of the hour.

After a session or two of feeling sorry for itself we first saw the euro find some dip demand yet again which took EURUSD up to 1.0893 from 1.0870 with EURGBP and EURGBP both following suit.

That rise through 0.,8400 on EURGBP helped cap GBPUSD and then soft UK output and trade data gave it a helping hand lower to 1.2903 from 1.2935, a move that also saw EURGBP up further through 0.8440. Rection musted for the moment as markets wait to see what Carney & Co have got lined up.

Meanwhile USDJPY has spent most of the session supported above 114.10 but failing to make much proogress through 114.20 and remains deliately poised as i I type.

USDCHF fremains underpinned but in a tight range as EURCHF supply above 1.0970 caps the latest rally again/.

NZD fell in Asia as the RBNZ left rates on hold as expected but not as hawkish as some had hoped. In Europe though we've seen some buyers return into 0.6825 although failing to get back above 0.6860.

Oil has mostly firmed and that initially saw a fall in USDCAD to test 1.3680 fr0m 1.3740 but the reverse is starting to appear.

So waiting on BOE and presser with US weekly jobs data amongst that on the slate to follow.