Forexlive European FX news wrap: USD under pressure still. Pound's turn to feel some love

Author: Mike Paterson | Category: News

Forex trading news and economic data headlines 16 May 2017

News:

Data:

We began with USD still on the back foot and euro still making gains but now we have a steadier pound as the focus.

It's all relative of course and overall we're still ranging but EURUSD has given up on 1.1130 for the moment albeit finding demand into 1.1080 while USDJPY has support into 112.00-20 while struggling to advance above 112.60

The pound though has made a break for the tape and after wiping its feet around 1.2950-55 we've seen 1.2978 before once again running into sellers. Yesterday's ECJ ruling perhaps accounting for some current demand in past 24 hours. EURGBP has dipped to 0.8560 too in what has been a generally softer session for the euro and that's also provided some GBP support.

USDCAD fell to 1.3579 and AUDUSD rallied to 0.7444 on early USD supply but in both cases we've seen some option expiry impact and reversals to 1.3638 and 0.7392 .

USDCHF has found support at 0.9820 and we can't rule out SNB interest down there and/or 0.9800 as EURCHF retreats again albeit holding 1.0900 for the moment.

Equities opened lower on the latest Trump concerns and have remained in negative territory.

Light data slate coming up but there's enough going on to keep things ticking over nicely. BOE's Haldane speaking at 18.00 GMT.