Forex news for European trading - 18 December 2017
Economic data:
- Eurozone November final CPI y/y +1.5% vs +1.5% estimate
- SNB total sight deposits w.e. 15 Dec CHF 575.4bn vs CHF 575.9bn prior
- Italy October trade balance +EUR 4.95bn vs +EUR 3.99bn prior
- UK December CBI trends total orders 17 vs 15 expected
Central banks/Politicians:
- ECB to pay "special attention" on relocation plans of Brexit-hit banks
- Fed's Williams: Something like 3 rate hikes next year is a reasonable view
- EU's Moscovici: US tax reform may have international consequences
- Bundesbank: Strong momentum in German economy should continue in winter 17/18
- BOF's Villeroy: Bitcoin is not money, it's purely speculative
- Australia's Morrison: We expect stronger wage outcomes over the next 4 years
- Ma Jun: China should replace GDP growth target with a jobless rate goal
Others:
- FX option expiries for the 10am NY cut - 18 Dec 2017
- INEOS: Timeframe of 2-4 weeks for repair of North Sea Forties pipeline system
- Another reason why the EUR/USD is gaining ground today
- How are CME Bitcoin futures faring on its first full trading day?
Markets:
- EUR leads the way so far, USD & CAD the laggards
- European equities firmer on the day, following the cue from Asian equities
- Gold is up by 0.28% to $1,258.91
- WTI crude is higher by 0.37% to $57.51
- US 10-year yields are higher by 2bps to 2.37%
It's a quiet day on the data front (no significant data points to be honest) but there are some large-ish moves - more as I am typing this out as well. The EUR and GBP lead the way - but for very different reasons. EUR is finding some dip buyers as we approach a key upward trendline on the daily chart here - and EUR/USD is seen shooting back up to test 1.1800 again.
Meanwhile, the GBP is riding high ahead of news from UK PM May on trade talks with the EU. Calm ahead of the storm? Other pairs are generally higher on the day against the dollar. The kiwi was initially the darling of the major bloc, but its gains on the day are now being overshadowed. Same thing as Friday for the kiwi, AUD/NZD selling is helping to keep the NZD underpinned.
And the tax bill vote is weighing down the dollar quite heavily as we head into the US session. Well, "it's not done until it is done" seems to be the mentality traders are having on the matter. Lastly, the CAD is having a bit of a mixed session - as some selling late in the day is driving the currency lower.
