Forexlive European FX News wrap: Euro and pound in focus as the week-end approaches

Author: Mike Paterson | Category: News

Forex trading news and economic data headlines 21 April 2017



Another nervous session that's seen prices mostly stick to recent ranges with weaker UK retails knocking the pound and pre-French election nerves unsettling the euro.

The session began with some PMI data-led euro demand which nudged EURUSD up to 1.0730 and EURGBP to 0.8390 following weak UK retail sales data. EURJPY also looked underpinned as USDJPY found support albeit in tight ranges again.

That EURGBP move helped push cable lower, which customarily had made a move ahead of the data from 1.2820 to 1.2805 and the subsequent shove lower was therefore limited to 1.2790 but we've been down to test the range bottom at 1.2770 since with EURUSD falling through 1,0700 and triggering stops to 1.0688 before finding fresh demand. Sizeable option expiry interest in play too.

 AUDUSD has remained close to its own option interest at 0.7525 while USDJPY also has clumps of contracts rolling off either side of 109.00 and hence limiting its range along with the cross-pair interest playing out both ways.

Canadian CPI to come at 12.30 GMT and we've seen USDCAD capped at 1.3480 again and testing 1.3450 support. NZDUSD has option interest at 0.7025 to keep it contained too.

Equities started in mixed mode but by and large have made a few gains.

So it's a busy week-end ahead and potentially price impacting come Sunday night/Monday morning and we can expect to see some more position adjustment before the day is out.