Forex trading headlines 3 July 2014
- BOE’s Cunliffe says the biggest risk to the UK economy is house prices rising faster than income
- Rates are the last line of defence on stability risks say’s BOE Cunliffe
- BOJ consumer sentiment survey sees spending decreasing a year from now
- Actions will speak louder than words in Australia so it’s time to fight the central bank
- Banks fight back against EU bank plans
- The first BOE MPC worms will turn in August – RTRS
- June 2014 Italian Markit/ADACI services PMI 53.9 vs 51.8 exp
- June 2014 French Markit services PMI 48.2 vs 48.2 exp
- June 2014 German Markit services PMI 54.6 vs 54.8 exp
- June 2014 eurozone Markit services PMI 52.8 vs 52.8 exp
- June 2014 UK Markit/CIPS services PMI 57.7 vs 58.3 exp
- May 2014 eurozone retail sales 0.0% vs 0.2% exp m/m
- Irish Q1 GDP 2.7% vs 1.2% exp q/q
Big day today for markets and we kicked of with a round of European and UK data.
Services PMI’s were the main order of the session and Europe scraped by with some positive numbers. Underneath the headlines was some strength in new business suggesting a pick up in the sector. Germany quashed any hopes of trading the numbers as they were the skunk of the pack and the numbers disappointed.
EUR/USD tried a move higher but there was no real willing to wander off the reservation with the ECB and NFP due. Just under 20 pips has been the range between 1.3645 and 1.3664
The pound was looking to end the data stream on another high note but those thoughts were kicked into touch with a downside miss on the headline services PMI number. What saved the report were strong components like employment and new business. We had a look at downside support at 1.7140 and broke it by a few pips but it wasn’t to last. We slide into the US session back on the lows at 1.7130 as the market readies itself to the upcoming events.
USD/JPY trudged up towards 102 but found resistance at 101.95 hard going. Again, an element of unwillingness to push the envelope ahead of the data sees us 8 pips lower
AUD/USD is still seeing birdies and stars flying around its head after RBA’s Stevens knocked it out with a barrage of punches overnight. The smelling salts aren’t working at the moment but the US data may shock it back to life. 0.9361/81 has been the range
Over to ECB HQ now for the rate announcement and then the presser which is joined by the non farm payrolls. Don’t forget to enter our contest here. 4 (four) mugs on offer today
