Forex trading headlines 4 August 2014
- Is the Banco Espirito Santo rescue good or bad for the euro?
- German businesses rail against central bank higher wage calls
- Communication is the core element of central bank policy says Draghi
- July 2014 Spanish unemployment change -29.8k vs -111.9k exp m/m
- July 2014 Swiss SVME manufacturing PMI 54.3 vs 53.1 exp
- July 2014 UK Markit/CIPS construction PMI 62.4 vs 62.0 exp
- Investor sentiment in Europe collapses on Russian sanctions as Eurozone Sentix Index for August falls to 2.7 vs 9.0 exp
- June 2014 Eurozone PPI 0.1% vs 0.0% exp m/m
- Shadow MPC in favour of early UK interest rate rises
- Mizuho concerned about risks from ECB stress tests after Banco Espirito Santo bailout
- Fed’s Lacker says markets may be underestimating FOMC tightening pace
- BOE’s Spencer Dale to leave for job at BP
- US SME borrowing falls in June though figures still point to better GDP growth
- When Samaras met Junker
- EU’s Juncker says a haircut on Greek debt is not part of his thinking
- It’s never good enough for the French as Hollande bemoans currency strength
The early birds (me for one) wanted to see how the market took the weekend Banco Espirito Santo rescue by the Bank of Portugal. Would jitters arise that banking problems in Europe haven’t been solved or would there be positivity that a major problem had been fixed, as it should be, by European policy. After a wobbly start for European stocks which we’re up then down then up again the latter seems to be the consensus as they now look to be trying to put in some sort of bounce. Portugal’s PSI 20 is up 1.34% at time of writing after the market chewed over the news first thing.
And stocks is where all the action seems to be concentrated as currencies haven’t finished their weekend partying it seems.
If you can scrape a living out of the 17 pip range between 1.3416 and 1.3433 then you’re doing well.
You get 23 pips to work with in GBP/USD and with the construction PMI coming in without any shocks, that looks to be your lot until the yanks touch down in trading city.
USD/JPY increases the pip range further and 25 pips is the ballpark so far. A run to the highs at 102.73 was countered with run to the lows at 102.48. It’s no shock to see us more or less bang in the middle at 102.63
Monday’s are proving to be a bit of a drag, especially with a data hangover from last week. The ISM’s New York business index at 14.45 gmt +1 gives us the best shot at some data driven news and the market would like to see it beat the 60.5 posted last month. 15 minutes after that US employment trends should continue to show the trend in the US jobs market and may print better than the 119.6 in June.
