Forexlive European FX News wrap: Euro feels the love and yen finds the sellers again

Author: Mike Paterson | Category: News

Forex trading news and economic data headlines 20 April 2017



A data-lite session but one that saw the euro find a few buyers with French elections in focus and Japan's Mitsui Life outlining intentions to increase EUR/reduce USD bond holdings.

With German bond yields rising through 10 day highs we saw EURUSD break up through 1.0730, then eventually 1.0750 to post highs of 1.0777 before retreating. The move was helped buy USDJPY dip-demand pushing yen pairs higher with EURJPY rallying to 117.50 from 116.85.

EURGBP also got a lift from the euro love-in and from 0.8365 we saw a steady move to 0.8410 putting a cap on GBPUSD demand that had previously been helped  by GBPJPY buying to 140.07. Offers in both pairs have seen a retreat to 139.56 and 1.2797 from 1.2844

Elsewhere the euro demand was also making an impact on AUDUSD, NZDUSD and USDCAD but after falls in all three we've seen a recovery as euro sellers return to the fray.

Oil has been side-lined in a tight range still after yesterday's fall but softer metal prices continue to weigh on AUD.

Little data of note to come but we do have a few CB talking heads on the slate inc BOE's Carney in Washington at 15.30 GMT and US' Mnuchin at 17.15 GMT