Forex trading headlines from the European session 2 June
News:
- Coming soon: Osborne’s grand plan for targeting FX manipulation
- US Fed’s Evans says central bank independence is critically important
- US Fed’s Evans says interest rate increase in 2015-2016 depends on economy
- Spain’s King Juan Carlos to abdicate
- Merkel is definitely trying to secure majority support for Juncker
- Schaeuble: Germany is ready to offer more aid to Greece
- Germany inflation looking ghastly in the run up to the ECB
Data:
- Germany’s Saxony CPI May m/m -0.1%
- Brandenburg CPI May m/m -0.2% vs -0.1% prev ( Hesse and others here too)
- UK Markit/CIPS mftg PMI May 57.0 vs 57.0 exp
- UK mortgage approvals April 62,918 vs 64,750 exp
- Eurozone Markit mftg PMI May 52.2 vs 52.5 exp
- German Markit mftg PMI May 52.3 vs 52.9 exp
- French Markit mftg PMI May 49.6 vs 49.3 exp
- Italian Markit mftg PMI May 53.2 vs 53.7 exp
- Spanish Markit mftg PMI May 52.9 vs 52.7 prev
- Swiss PMI May 52.5 vs 55.0 exp
- Nikkei closes up 2.07% at 14,935.92
In what is lined up to be a very significant end to the week the new month has started in tight ranges again but with opportunties nonetheless
After failing on Friday and in Asia to penetrate key resistance on GBPUSD and EURUSD at 1.6775-80 and 1.4640-45 respectively we’ve been on the retreat again this morning with the latter taking more of a hit on weaker PMI and German inflation data
EURUSD has fallen from 1.3635 to 1.3594 dragging EURGBP to 0.8115 from 0.8132 and EURJPY to 138.65 from 139.00 although both have staged rallies since. GBPUSD had a wobble down to 1.6725 support from 1.6742 just before the UK mtg PMI but was soon back up at 1.6745 and testing earlier highs of 1.6757 again.
USDJPY finally found the energy to climb from 101.95 to 102.05 but has sat there since while USDCHF has once again found the resistance at 0.8990 a step too far and retreated to 0.8970.
AUDUSD began where it left off in Asia, on the backfoot, and we were soon taking out the bids at 0.9250 to post 0.9244 before settling back at 0.9255 for the most part but still looking a little vulnerable. The kiwi has come off to lows on 0.8461 on the back of the Aussie retreat while USDCAD has found a little support to post 1.0868 after holding above fresh bids at 1.0835.
We can expect more jockeying for position until the Draghster finally steps to the plate.
