Forexlive European FX News wrap: Euro feels the love and yen finds the sellers again
Forex trading news and economic data headlines 20 April 2017
- EU governments revise their Brexit negotiating guidelines
- EU must avert the nightmare of a no free trade deal with UK
- Get the rotten eggs ready, Juncker's coming to London
- UK's Corbyn says Labour Party will change rules of rigged economy
- Mitsui Life say they will reduce Japanese bond holdings in 2017/18
- Macron still leads Le Pen in the 1st round Opinionway French election poll
- Latest Reuters poll has economists looking for ECB to extend QE beyond December
- The euro continues to climb despite looming French elections
- Euro extends gains with bonds in focus
- Greek government seeking viable solution for country's debt
- Kuwait expects an extension to the OPEC/non-OPEC output cut deal
- Iraq supports extension of OPEC oil supply cuts but may ask for exemption
- Abe & Co see better business conditions
- Japan press: China greasing economy with $55bn in tax breaks
- 2017 China GDP forecast eases to 6.5% - Reuters poll
- 2017 Australian GDP forecast steady at 2.6% - Reuters poll
- More NZ inflation data, this time the RBNZ's preferred inflation measure
- Option expiries for the 10 am NY cut today 20 April
- Nikkei 225 closes down -0.01% at 18,430.49
- Germany March PPI mm 0.0% vs 0.2% exp
- February 2017 Eurozone construction output 6.9% vs -2.3% prior m/m
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