Forex news for the European morning trading session 21 Nov 2017
News:
- BOE's McCafferty: Need to get interest rates higher before any QE unwinding
- BOE's Vlieghe: Waiting for all signs to line up for a rate hike likely to mean it's too late
- BOE's Cunliffe repeats that they expect inflation to peak Q4 2017
- UK government says any specific Brexit bill figure still subject to discussions
- UK's Davis seeking completely new trade deal post-Brexit, not a copy of previous agreements
- RBA's Lowe says no strong case for near-term change in interest rates
- Japanese government looking to cut long-term CPI forecast to 1.5% vs 2.0%
- Japan's Abe says he will implement boldest policies yet to support investment
- AUD and NZD both feeling some love this session
- Fed Chair Yellen will speak Tuesday US time - preview
- China says it will crack down on property speculators
- Forex option contract expiries for today 21 Nov
- Perky pound again as EURGBP retreats further
- Nikkei 225 closes up +0.7% at 22,416.48
- ForexLive Asia FX news wrap: A quiet pre-turkey session
Data:
- UK CBI Nov trends total orders 17 vs 3 expected
- UK Oct PSNBR GBP 7.5bln vs 6.5bln exp
- Spain Sept trade balance EUR -2.148bln vs -3.227bln prev
- Switzerland Oct M3 money supply 4.1% vs 4.3% prev
- Switzerland Oct trade balance CHF 2.33bln vs 2.92bln prev
- Japan Oct nationwide dept store sales yy -1.8% vs 4.4% prev
Another session that's seen a few ups and down but today it's been the turn of the pound.
Early selling of EURGBP down to 0.8842 from 0.8860 saw GBPUSD up to post 1.3267 and GBPJPY 149.38 but as per my warnings we then ran out of steam as GBP sellers were keen to take advantage.
Lows of 1.3209 on the back of some bearish comments ( albeit nothing new) from BOE members testifying to UK lawmakers with EURGBP back up testing 0.8885 and GBPJPY back below 149.00 were largely reversed by stronger UK CBI data .
GBPUSD 15m
USDJPY has largely been pinned around 112.50 with large option expiries at 112.00 seemingly out of reach while EURUSD had a wobble lower to 1.1714 and is still failing to rally too far.
USDCHF and EURCHF have both traded steadily amid all the cross play crossfire going on elsewhere.
AUDUSD had a lift from comments by RBA's Lowe and we saw 0.7584 from 0.7534 after first wiping its feet at 0.7550. NZDUSD was happy to join the party and posted 0.6827 from 0.6790. GDT auction results due today from around 13.00 GMT
USDCAD has another couple of large option expiry levels today, the bigger at 1.2750 and that's helped contain around 1.2800 but we can't rule out a burst for the tape such as we saw on Friday up to these levels.
Equities began on the back foot in negative territory but have since made gains adding to a general yen and swiss franc supply while gold has traded tightly between $1277-1280. Oil prices first rallied then returned to where they began.
Yellen speech at 23.00 GMT the main scheduled risk event ahead.
