Forex news for the European morning trading on 16 Aug 2017
News:
- Draghi will not be delivering any fresh policy message at Jackson Hole
- Perky pound after decent wages and jobs data
- UK's May says Britain may still want to help fund specific EU programmes after Brexit
- EU repeats first Brexit priority is to make sufficient progress on UK withdrawal
- AUDUSD continues to grind higher as large option expiries cast a shadow
- Forex contract option expiries for today 16 Aug
- Russia believes economic sanctions on North Korea are nearly exhausted
- Fed's Fischer says efforts to loosen bank rules “dangerous and extremely short-sighted”
- China outline plans to increase foreign investment
- China's commercial banks sold net USD 15.5bln vs 20.9bln prev
- Merkel's Conservatives drop a point of support in latest election poll
- German finmin Schaeuble does not agree with German court on ECB
- Nikkei 225 closes down -0.12% at 19,729.28
- ForexLive Asia FX news wrap: Asia FX tracks broadly sideways
Data:
- UK June average weekly earnings 3-mth/year 2.1% vs 1.8% exp
- Eurozone Q2 GDP second reading qq SA 0.6% vs 0.6% exp
- US MBA mortgage applications ww +0.1% w-e 11 Aug vs 3.0% prev
- Italy Q2 GDP qq prelim +0.4% as expected
A busy session that saw the pound recover after better than expected wages and jobs data but it's the euro that's really stood out after talk that dashed hopes of Draghi-taper talk at Jackson Hole.
The pound had an early wobble that saw GBPUSD post 1.2845 and EURGBP up to 0.9143 but then attention turned to the euro as reports came from Reuters sources that Draghi will not be signalling any policy changes in his speech at Jackson Hole later this month.
Cue sharp EUR falls which saw EURUSD down 1.1691 from 1.1755, EURGBP fall back to test 0.9100 and EURJPY down to 129.50 from 130.30. A few dip buyers came to its rescue but sellers have been quick to jump on rallies.
Stronger UK wages and jobs data saw the pound make a decent recovery with GBPUSD testing 1.2900 and EURGBP down to 0.9080 but closer dissection of the data has seen the pound retreat.
USDJPY began strongly to post 110.95 but once again unable to breach 111.00 while USDCHF also rallied to post 0.9757 before falling back as EURCHF tumbled to 1.1380 in the general euro retreat.
AUDUSD has large option expiry interest at 0.7825-30 and 0.7850 and we've seen decent protection to rally to 0.7867. NZDUSD steady while USDCAD fell from 1.2760 to test 1.2720.
US housing data at 12.30 GMT next release off the rank before we wait on the FOMC Minutes at 18.00GMT
