Forex news for European trading on May 26 2017

News:

  • Trump says North Korea is a big problem, but will be solved
  • G7 Summit: Reports of Trump concern over German trade surplus exaggerated
  • G7 still have different views on trade terms
  • PBOC to change the way it calculates the yuan’s daily reference rate
  • Japan's Lower House approves two new members of BOJ board
  • China's AA+ sovereign rating and Stable outlook affirmed by Dagong
  • USDCAD falls as oil firms but it's not the whole story
  • USDJPY flirts with 111.00 as yen demand prevails
  • Pound pairs in retreat again as the week comes to a close
  • Forex option expiries for the 10am New York cut 26 May
  • Nikkei 225 closes down -0.64% at 19,686.84

Data:

  • Italy May mftg business confidence 106.9 vs 108.00 exp

A data light session but with politics dominating we've seen some decent opportunities as yen demand prevails, oil rallies and the pound has another look lower. Gold rises to 3 week highs.

USDJPY opened trying to hold above 111.50 but general USD supply and risk-off yen buying has seen a steady slide down through 111.00 to post lows of 110.89 so far.

GBPJPY has once again been a prime mover down to 142.66 from 143.80

That supply has helped to cap cable along with EURGBP demand up to 0.8730 from 0.8695 and we've seen GBPUSD post 2-week lows of 1.2855 after 1.2890 highs

EURUSD opened just below 1.1200 but it wasn't long before it was spiking up to 1.1220 then 1.1235 before capping as EURJPY found fresh sell interest down to 124.35

Meanwhile USDCHF has held 0.9700 and one might reasonably suggest the SNB are lurking again as EURCHF retreats to 1.0885 from 1.0910 with CHF safe-haven demand in vogue too.

Oil has had a decent session with WTI up to $49.33 from $48.40 and that's helped push USDCAD down to 1.3433 from 1.3496

Gold has rallied to 3-week highs of $1268.30 as the risk-off sentiment prevails.

US durable goods and Q1 GDP the data risk at 12.30 GMT and G7 rhetoric to keep things ticking over too.

Lots more potentially to play out before the week-end finally arrives.