Forex news for European morning trading on July 24 2017
News:
- Cable rallies to test 1.3050 as EURGBP supply continues
- IMF's growth forecast cut underscores need to increase productivity says UK
- Saudi Arabia say they will continue to lead by example on oil output cut compliance
- Nigeria agree to cap oil output at 1.8mln bpd
- Forex option contracts expiries for 14.00 GMT 24 July
- ECB's Mersch: As conditions normalise it's unlikely that unconventional policies will remain necessary
- China says they will open markets further to foreign investment
- A PBOC adviser says yuan may appreciate in H2 of this year
- Nikkei 225 closes down -0.62% at 19,975.67
Data:
- Eurozone Markit July mftg PMI flash 56.8 vs 57.2 exp
- Germany Markit/BME July mftg PMI flash 58.3 vs 59.2 exp
- France Markit July mftg PMI flash 55.4 vs 54.6 exp
- Japan May leading index final 104.6 vs 104.7 expected
A busy enough session to kick-start a week that once again will see the FOMC in focus.
After the big rally last week for the euro traders have been happy to take some money off the table, helped in part by softer than expected PMI data, and we've seen EURUSD down to 1.1630 from 1.1675, EURGBP down to 0.8932 from 0.8970 and EURJPY down to 128.86 from 129.70 with USDJPY failing to hold the rally back above 111.00 and posting new recent lows of 110.62
The sell-off in EURGBP put a bid under GBPUSD and after an early fail at 1.3020 and retreat to 1.2990 it was mostly one-way traffic to post 1.3050 before being capped by fresh sell interest.
Similarly AUDUSD found a bid from EURAUD supply and has been up to post 0.7967 from 0.7920 before running out of steam as EURUSD found dip demand.
Equities have been and oil started a little wobbly but then found support from lots of output cut rhetoric emanating from the latest OPEC/non OPEC meeting. WTI has risen to $46.33 from $45.45, and Brent $48.76 from $47.70 before both running out of puff.
Brent crude 15min
Next data risk comes in the form of US mftg PMI at 13.45 GMT with existing home sales following at 14.00 GMT.
