Forex Analysis for Wednesday 17th May 2017
Tuesday: UK CPI y/y beat a high expectation (2.7% vs 2.6%). Core CPI behaved similarly. EUR Flash GDP was on target at 0.5%.
US President Trump asked ex-FBI Director Comey to close the investigation into Trump’s former National Security Adviser Michael Flynn, according to news reports citing a Comey memo. However, the White House denied this and stated that US President Trump never asked Comey to end probe of Michael Flynn, while there were also reports that the US House Oversight Committee Chaffetz Chair stated that the subpoena pen was ready for the Comey memo and demanded all related FBI documents. (NYTimes/NBC/Newswires)
Sentiment moves risk-off. The USD drops on the suggestion Trump asked Comey to halt an investigation into Flynn. The S&P 500 is flat and gaps down this morning. WTI drops and gold benefits and the US 10 Year yield drops. A perfect risk-off scenario. The EUR drives upwards through resistance and the JPY strengthens. The GBP continues its weakening. The AUD drops to support as does the NZD.
GBP Average Earnings Index.
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