Forex trading headlines from the European morning session 1 August
News:
- BOJ’s Kuroda says current outlook assumes sales tax is raised to 10%
- Ukraine tv reports that 20 servicemen have been killed in rebel attack
- Gaza ceasefire collapses
- The importance of letting the market do the talking as European stocks collapse
Data:
- July 2014 UK Markit/CIPS manufacturing PMI 55.4 vs 57.2 exp
- Eurozone Markit mftg PMI July 51.8 vs 51.9 exp
- German Markit mftg PMI July 52.4 vs 52.9 exp
- French Markit mftg PMI July 47.8 vs 47.6 exp
- Italian Markit mftg PMI July 51.9 vs 52.6 exp
- Spanish Markit mftg PMI July 53.9 vs 54.6 prev
- Irish Markit mftg PMI July 55.4 vs 55.3 prev
- Nikkei closes -0.63% at 15523.11
Ahead of the main event from the US focus has been on the UK this morning and another slap lower for the pound as mftg PMI came in well under expectations
GBPUSD dropped from 1.6875 to 1.6838 and then another drop to 1.6822 having failed to rally past 1.6845. EURGBP cleared out the remaining offers into 0.7950 to post 0.7965 on the second wave only to attract a few sellers/profit takers and we’re back at 0.7955
EURUSD took its cue from the euro buying to bounce off the 1.3380 support areas again and we’ve crept over 1.3400 before stalling as EURJPY offers at 138.00 helped capped both core pairs with USDJPY failing to take out the renewed offers at 103.00
AUDUSD and NZDUSD have both been on the backfoot still while USDCAD has taken out the offers into 1.0940 only to retreat to 1.0935 from 1.0945 highs
No prizes for what’s going to kick this all around again later but we can be assured of some fun n games to close the week.