Forex news for the European morning trading session 1 Sept 2017
News:
- Nowotny says ECB shouldn't "overdramatize" euro rise
- ECB's Notwony sees no need for higher interest rates if inflation remains low
- ECB's Constancio says normalization of inflation and unemployment still difficult
- ECB likely to keep policy on hold next week says latest poll
- Fox says UK must not allow itself to be "blackmailed" by EU on Brexit
- IEA say they do not currently see a need for coordinated release of oil stocks
- Eurozone 2017 CPI forecast lowered to 1.4% vs 1.5% prev says BAML
- Forex option contract expiries for today 1 Sept
- Australia August commodity index in SDR terms yy +20.1%
- Nikkei 225 closes up 0.23% at 19,691.47
- ForexLive Asia FX news wrap: China data strong again today
Data:
- Eurozone Markit August mftg PMI final 57.4 as exp
- UK Markit August mftg PMI SA 56.9 vs 55.0 exp
- Germany Markit August mftg PMI final 59.3 vs 59.4 exp
- France Markit August mftg PMI final 55.8 as exp
- Italy Q2 GDP final reading qq WDA 0.4% as exp
- Italy Markit/ADACI August mftg PMI 56.3 v 55.3 exp
- Spain Markit August mftg PMI 52.4 VS 54.4 exp
- Switzerland August mftg PMI 61.2 vs 60.2 exp
- Japan August consumer confidence 43.3 vs 43.5 exp
- India Nikkei/IHS Markit August mftg PMI 51.2 vs 47.9 prev
A busy session albeit in tight ranges as traders/bots show understandable fragility on ECB comments and NFP data looming.
The session began with some USD demand but it was soon all eyes on the euro as PMIs and comments from ECB'S Nowotny and Constancio were thrown into the fragile mix.
We've seen EURUSD fall to 1.1893 and a spike to 1.1930 on the second Nowotny "euro rise" comment only to run into option defence and that p/a spill over to EURGBP to post a range of 0.9196-0.9223 but with fickle moves in between.
EURUSD
GBPUSD had an early test of 1.2900 from 1.2930 only to rally and then get an added lift to 1.2935 after better PMI data before retreating to 1.2920 and firming up from there.
USDJPY meanwhile has remained underpinned while going nowhere fast and the same can be said for USDCHF,USDCAD,AUDUSD and NZDUSD.
All focus is on NFPs with large option expiries waiting to play out in the aftermath.
