Forex news for European morning trading on July 26 2017
News:
- Hammond says can not be complacent about UK growth
- EU Commission ready to take action to protect EU interests over latest US sanctions on Russia
- BOJ's Nakaso sees no need to ease policy
- Swiss franc weakens sharply as we wait on FOMC
- Analyst on the Aussie CPI result: "lack of any broad inflationary pressures"
- AUDUSD finds dip demand with option expiries in play
- AUDUSD posts new session Low(e)s
- Merkel's Conservatives maintain 40% support in latest poll
- Forex option contract expiries for 26 July
- Nikkei 225 closes up 0.48% at 20,050.16
- ForexLive Asia FX news wrap: AUD a wee bit lower - headline CPI dips
Data:
- UK Q2 GDP first reading QQ 0.3% as expected
- France July consumer confidence 104 vs 108 exp
- Switzerland ZEW CS expectations 34.7 vs 20.7 prev
- Italy July business confidence 107.7 vs 107.00 exp
- Switzerland UBS consumption indicator 1.38 vs 1.32 prev
A busy enough session that's seen the pound dip and recover but swiss franc weaken notably with SNB smoothing yet again in the frame.
GBPUSD had a quick pre-Q2 GDP dip to test 1.3000 and but then rallied to 1.3044 from 1.3024 post-data in a move that also saw EURGBP break down through 0.8920 to post 0.8913. The pair bounced back to .0.8934 but has seen been in retreat helping to underpin cable.
That euro supply though was definitely not evident in EURCHF which after recent support around 1.1080 spiked sharply higher from 1.1115 to 1.1152 and then 1.1176. USDCHF launched higher from 0.9550 to 0.9588 after finding a good base at 0.9520.
EURCHF 15m
That's not the whole story though and we've seen AUSUSD hold 0.7880 after Asian falls from 0.7960 after softer CPI and dovish RBA governor Lowe. Option expiries between 0.7900-10 helping to support, contain and now rally to 0.7922
USDJPY has drifted lower to 111.74 after failing to get back over 112.00 while EURUSD has been mostly trading 1.1620-50. USDCAD has been tightly bound between 1.2500-20.
Equities took little time from the opening to post some decent gains while oil has had an early dip but held steady since.
FOMC at 18.00 GMT the main event to come.
