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FOREX: Political Rumourmill Puts EUR Lower into NY Cut

FOREX
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  • The greenback trades firmer headed into the NY crossover, in a session dominated by political speculation and economic releases, as rumours circulate that the French President Macron could consider resignation should the right-wing emerge victorious in the snap election called on Sunday night. While the Presidency have seemingly denied the rumours, the rescheduling of a press conference originally set for today will have added to the uncertainty, which continues to weigh on French bonds and benefit haven currencies.
  • As a result, the USD Index is stronger early Tuesday, while the EUR slips. EUR/USD has traded back below 1.0750, however the Monday lows remain out of reach for now and mark next support at 1.0733.
  • Meanwhile, UK labour market data has been in focus, and showed a faster pace of wage gains than expected, however softness is beginning to build around joblessness, as the claimant count and employment change numbers for May and April respectively fared worse than expected. 
  • GBP/JPY remains either side of the 200 level, within striking distance of the 200.74 cycle high. USD and GBP are the session's best performers, while NOK is the weakest. 
  • Focus for the remainder of the Tuesday session rests on US NFIB Small Business Optimism data as well as Building Permits numbers from Canada. The ECB speaker slate further picks up, with appearances from ECB's Holzmann, Villeroy, Lane, Makhlouf and Elderson all scheduled. 
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  • The greenback trades firmer headed into the NY crossover, in a session dominated by political speculation and economic releases, as rumours circulate that the French President Macron could consider resignation should the right-wing emerge victorious in the snap election called on Sunday night. While the Presidency have seemingly denied the rumours, the rescheduling of a press conference originally set for today will have added to the uncertainty, which continues to weigh on French bonds and benefit haven currencies.
  • As a result, the USD Index is stronger early Tuesday, while the EUR slips. EUR/USD has traded back below 1.0750, however the Monday lows remain out of reach for now and mark next support at 1.0733.
  • Meanwhile, UK labour market data has been in focus, and showed a faster pace of wage gains than expected, however softness is beginning to build around joblessness, as the claimant count and employment change numbers for May and April respectively fared worse than expected. 
  • GBP/JPY remains either side of the 200 level, within striking distance of the 200.74 cycle high. USD and GBP are the session's best performers, while NOK is the weakest. 
  • Focus for the remainder of the Tuesday session rests on US NFIB Small Business Optimism data as well as Building Permits numbers from Canada. The ECB speaker slate further picks up, with appearances from ECB's Holzmann, Villeroy, Lane, Makhlouf and Elderson all scheduled.