Forex news for European morning trading on July 18 2017
News:
- UK's Hammond: "It's so important we act responsibly now to maintain fiscal discipline"
- Pound falls again as UK inflation data fails to inspire
- Moody's say failure to reach a Brexit deal will be credit negative for some UK-based issuers
- Latest Reuters poll sees BOE holding rates at 0.25% until 2019
- USD falls further as concerns on Trump and data continue
- Forex option contract expiries 18 July
- US Fed to hike interest rates by 25bps in Q4 2017
- EU's Moscovici upbeat on Portugal progress
- ECB report rising Q2 net demand for corporate loans, mortgages and consumer credit
- BOJ to keep inflation target at 2% but will again push back the time when it will be reached
- AUDUSD underpinned after RBA comments but sellers above 0.7900
- Global Dairy Trade auction in the mix today for NZD traders
- Nikkei 225 closes down -0.59% at 19,999.10
- ForexLive Asia FX news wrap: USD sold across the board (politics again)
Data:
After solid declines in Asia based on weak US data and concerns over Trump's ability to push through changes we've seen more of the same in Europe.
The pound has come under pressure of its own after UK inflation data came in below expectations.
EURUSD has retained a bid tone all session to post 14month highs of 1.1565 with USDCAD falling to 14month lows of 1.2580. GBPUSD had an early bounce to 1.3126 but began to get sold back into the UK inflation data.
On weaker release we dropped from 1.3080 through 1.3050 support to post 1.3005 so far with EURGBP needing little excuse to rally on the session from 0.8780 support lines to 0.8880 resistance/supply area.
USDCHF has fallen to 0.9538 with EURCHF bucking the better euro tones generally and falling from 1.1065 to 1.1020 while USDJPY had a small rally above 112.30 from 112.00 only to retreat.
AUDUSD enjoyed the ride higher after bullish/upbeat RBA Minutes in Asian trading we saw gains extended to 0.7943 from 0.7895 while NZDUSD also had a good day at the office.
Equities opened in negative mode and extended gains while gold was in a positive frame of mind and up through $1239 and oil also on the up with WTI up through $49.30 from $48.35 helping USDCAD on its way lower.
Little on the data front to come but we do have Carney launching the new £10 note at 13.30 GMT. Can never rule out some mon pol references from the BOE gov.