Forex news for European morning trading on June 21 2017
News:
- BOE's Haldane says risk of tightening too early has fallen
- UK Queen's Speech: Government's priority is to secure best possible Brexit deal
- UK's Green says Conservative Party talks with DUP still progressing
- BOE agents report says moderate underlying UK growth has continued
- ECB says global growth risks remain tilted to the downside
- BOJ's Kuroda says they still have a long way to go to hit 2% price target
- Russia considering retaliatory measures on US following latest sanctions
- Saudi news weighing on 'risk'
- Tsipras expects downtrend in Greek government bond yields to continue
- Latest poll sees Merkel's Conservatives stretch election lead to 16 points
- Forex option expiries for the 10am New York cut 21 June
- Nikkei 225 closes down -0.45% at 20,138.79
Data:
- UK May PSNBR GBP bln 6.0 bln vs 7.0bln exp
- Japan data - All Industry Activity Index for April: 2.1% m/m (vs. expected +1.6%)
- Japan May machine tool orders final 24.5% vs 24.4% exp
- Japan May supermarket sales yy -1.8% vs 0.6% prev
The pound found itself under pressure again for the first part of the session with GBPUSD moving from 1.2725 to 1.2689 and EURGBP up to 0.8844 from 0.8808.
Failure to break lower and the upcoming Queens Speech then encouraged some profit taking and by the time Her Maj sat down we were back to 1.2730 and 0.8825.
The ,albeit diluted, speech suggested a softer Brexit tone to previous May rhetoric and that helped support the pound too until lifted higher in a flash moments later as BOE chief economist Haldane spoke in hawkish tones.
GBPUSD was soon testing 1.2700 from 1.2645 and EURGBP 0.8785 from 0.8805 in rapid-time. Second wave action has seen 1.2709 and 0.8772 before fresh GBP supply.
Elsewhere USDJPY and EURUSD have both seen ranges contained by large option expiries today along with two way cross impact from EURGBP and GBPJPY.
Equities opened on the back foot as per elsewhere around the globe and that added to the early risk-off sentiment.
Oil also suffered early losses but has recovered to post fresh session/Asian highs and that's seen USDCAD up and down in a 1.3270-1.3300 range.
AUDUSD and NZDUSD have remained underpinned but both in retreat later in the session.
US existing home sales at 14.00 GMT the only data event of note to come.
