Forex news for European trading on May 18, 2017:

  • UK April retail sales mm 2.3% vs 1.1% exp
  • Another sad day for music: Chris Cornell dead at 52
  • Read the full Conservative election manifesto
  • UK Conservatives pledge to develop shale industry in Britain as part of election manifesto
  • Read the full Conservative election manifesto
  • ECB's Vasiliauskas says any tapering of assets should be gradual
  • BUBA's Weidmann says ECB should normalise policy if recovery continues
  • China April FDI yy -4.3% in yuan terms
  • ECB's Coeure says they remain ready to adjust policy if needed
  • France Q1 ILO unemployment rate 9.6% vs 10.0% exp
  • Fitch says rapid growth of Chinese investment companies is building risks
  • Another sad day for music: Chris Cornell dead at 52

Markets:

  • Gold down $1 to $1259
  • WTI crude down 69-cents to $48.38
  • UK 10-year yields down 2 bps to 1.05%
  • FTSE 100 down 81 points to 7422
  • GBP leads, EUR lags

The surge in UK retail sales raised eyebrows and skepticism but it also raised the pound. The strong headlines sent cable above 1.30 before it finally stalled ahead of offers at 1.3050. That's the highest since early October.

Otherwise the theme has been worsening sentiment as the US political intrigue deepens on the appointment of a special prosecutor to look into Trump's campaign ties to Russia. US stock futures had been down as much as 15 points but they've pared most of the losses.

By the same token, USD/JPY fell as low as 110.24 but bounced to 110.80 most recently.

The euro is retracing after four days of big gains. It's down 45 pips to 1.1115 and near a session low.