Forex news for European morning trading on July 19 2017
News:
- Villeroy says he thinks ECB has removed deflation risk
- UK sets up new business council to discuss Brexit and the economy
- Moody's report that the US corporate cash pile reaches USD 1.84trln
- Morgan Stanley Q2 profit up +11.4%
- Latest Forsa poll sees Merkel's election support back up to 40%
- Range trading the order of the day as we wait on NA desks to open
- Reuters poll on Australian GDP forecasts - lower than prior
- Fitch say new capital requirements will strengthen Aussie banks
- Indian economy expected to grow by 7.3% in 2017-18
- Nikkei 225 closes up +0.1% at 20,020.86
Data:
- Eurozone May construction output mm -0.7% vs +0.3% prev
- US MBA mortgage applications up +6.3% w/e 14 July
- Japan June machine tool orders yy final 31.1% as exp
Not a session to set pulses racing but opportunities for the intraday traders as markets enter cautious mode ahead of BOJ and ECB tomorrow.
Tight ranges the key feature with GBPUSD failing to breach either 1.3010 or 1.3050, EURUSD 1.1515-45, USDJPY 111.90-20 AUDUSD 0.7915-45 USDCAD 1.2620-50
Understandable that traders/bots should take some money off the table after recent strong gains in AUD,EUR and CAD while 1.3000 holding has encouraged GBP shorts to take a bit back.
Summer holidays also adding to the general malaise but we can expect some action tomorrow with the jury out on whether we get any change of stance from either the BOJ or ECB. Unlikely we will get any changes but we never say never in forex.
Equities opened a little firmer but haven't set markets alight while gold had a md-session dip to look around $1236 again before rebounding to $1240 as I type. Oil had a decent session with WTI holding $48.60 and posting $49.15 after yesterday's retreat from $49.40
No data of note nor rhetoric to stir things up but US housing starts and building permits on the horizon at 12.30 GMT
