Forex trading headlines from the European morning session 3 June
Data:
- May eurozone HICP flash 0.5% vs 0.7% exp y/y
- Eurozone unemployment rate April 11.7% vs 11.8% exp
- UK Markit/CIPS construction PMI May 60.00 vs 60.8 exp
- Nationwide house price index May m/m +0.7% vs +0.6% exp
- Italian unemployment rate April 12.6% vs 12.7% exp
- Spanish jobless claims fall by 111,916 in May
- Irish Markit mftg PMI May 55.0 vs 56.1 prev
- Nikkei closes up 0.66% at 15,034.25
- Shanghai Composite Index closes down 0.04% at 2038.31
News:
- RBA leaves rates unchanged
- RBI leaves repo rate on hold at 8%
- Japan’s Noda says corporate tax cut won’t work without revenue sources
- Russia and China to open a joint rating agency
- Gazprom says it hopes to find mutually beneficial deal with Ukraine
- Ukraine urges EU to block south stream gas project
- EU asks Bulgaria to suspend work on South stream gas project
- What’s in store for Australia after the boom ?
We’ve seen some opportunity in certain pairs but moves have still been contained in the tight ranges that have dominated the landscape lately.
AUDUSD had a lttle run up to 0.9284 from 0.9260 after the RBA left rates and tone unchanged but the pair ran out of steam once more and has dipped to 0.9256 while NZDUSD has also been hemmed in by 0.8440 bids and 0.8480 offers.
GBPUSD had another pre-data run higher to the key resistance/offers between 1.6775-85 but once again it was a case of buy rumour/sell fact and we’ve since retreated to 1.6745 as I type. The move higher also had EURGBP running into strong bids between 0.8100-10 but that has also held ( not un-coincidentally) to rally above 0.8120.
No one should be too surprised that these ranges continue given that there is very little momentum, and with traders keeping powder dry until Thursday we’ve also seen EURUSD hold a dip to 1.3585 support on weaker CPI to rally to 1.3606 on better jobs data.
USDJPY had a quick look below 102.30 in early trading but soon bounced back to 102.45 with EURJPY bids above 139.10 adding to the demand.
USDCAD has stuck its head above 1.0900 again from 1.0890 but 1.0920 again proving a step too far.
Opportunity then for the intra-day traders as long you don’t get too greedy.
