Forex - European Highlights ~ Monday 19th June 2017 - Update

 10:09 (GMT) 19 Jun

  [Forex Highlights]

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European Highlights ~ Monday 19th June 2017 - Update (0100-QHDZ-C01)

European Highlights

19 June 2017

Asia FX and News -

+ BBG: RBA Governor Lowe said the economy is capable of faster growth, though warns it requires lawmakers to surmount current political gridlock.

+ Japan's May trade saw a surprise deficit as stronger imports overpowered the continued growth in exports.

+ President Macron won a commanding majority in France's parliamentary election to secure a powerful mandate for pro-business reforms; turnout was a record low 42%.

+ NZD was the bigger mover in quiet trade on reported macro demand following stronger than expected confidence data. AUD/NZD led the move, sliding down the recent 1.04/1.05 range. GB was slightly better bid on hopes for a softer Brexit, Cable up some 50pips at one stage. USD/JPY regained the 111 handle as equities picked up, while EUR/USD stuck close to 1.1200.

Nikkei and JGBs -

+ N225 closed +0.62% at 20067.75. 10yr JGBs yield 0.055%.
European FX and News -

+ While equity markets took a big step up at the open the FX markets have been slow to get involved, EUR/USD continuing to trade close to 1.1200 after trying both sides early in the session. The sweeping Macron victory in France has not provided any obvious support.

+ GBP is a shade firmer again with Cable taking a look over 1.2800 (1.2813 the high). EUR/GBP saw a low at .8732, with GBP/JPY holding on over 142 after plenty of flirting with major support at 138.80/85 last week.

+ Despite the better equity tone USD/JPY can't hold above 111.00 for any quality time, EUR/JPY relatively tight in a 50 pip range based on 124.00.

+ The commodity currencies are all in some demand, AUD/USD holding over .7600 despite Moody's modestly downgrading the Australian Big Four banks a notch to AA3 from AA2. AUD/NZD has settled mid-range, while USD/CAD reversed a mid-session pop higher as Crude found some support.

+ EUR/CHF briefly traded over 1.09 but has edged back down again to mid-range.

+ No change in Scandinavia with EUR/SEK still comfortably mid-range, NOK keeping pace.

Bonds and Equities -

+ A risk positive start to the week with equities only starting to pare gains late in the session pre-N.America open; Dax still up 0.7%, FTSE +0.5%. Eurozone bonds are mainly close to flat but Portugal and Spain seeing some reversals, while Gilts initially under-performed but are now back close to flat.

Data -

UK: Rightmove House Price Index (Jun) -0.4% m/m (Prev: 1.2)

UK: Rightmove House Price Index (Jun) 1.8% y/y (Prev: 3)

Japan: Customs Cleared Trade (May) -203.4 JPY bn (Mkt: 43.3 Prev: 481.1)

Australia: New Motor Vehicle Sales (May) 2.9% m/m (Prev: 0.6R)

Still To Be Released -

Events & Auctions:

AU: RBA Minutes Released

UK: BoE's Carney Speaks in London

12:00 GMT - US: Fed's Dudley Speaks in Plattsburgh, New York

12:50 GMT - FR: Bills auction

13:30 GMT - US: 3mth Bills auction

15:30 GMT - US: 6mth Bills auction

23:00 GMT - US: Fed's Evans Speaks in New York

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