Forex trading headlines from the European morning wrap 2 Sept
News:
- RBA: No change to cash rate target – Sees likely period of interest rate stability
- Russia says comments by Putin about “taking Kiev in two weeks” were taken out of context
- Russia says it will adjust its military doctrine in response to NATO enlargement and situation in Europe & Ukraine
- Aggression against Crimea will be seen as an attack on Russia
- Russia’s Lavrov says Minsk meeting may mark shift to compromise from demands
- Hollande and Draghi agree that budget flexibility is needed
- Scottish jitters give the pound another kick lower
- UK housing market starting to feel the heat from new mortgage rules
- EU Commission says it is to hold talks with Russia on Thursday to resolve Ukraine gas price argument
- Slovak-Ukraine pipeline opened carrying natural gas from EU
- Japan’s Suga says PM Abe will hold press conference after govt re-shuffle Wednesday
- Gold back on its lows as USD dominates
Data:
- August 2014 UK Markit/CIPS construction PMI 64.0 vs 61.4 exp
- Swiss Q2 GDP qq 0.0% vs +0.5% exp
- July 2014 Eurozone PPI -0.1% vs -0.1% exp m/m
- OECD July inflation falls to 1.9% from 2.1% prior y/y
- Spanish jobless rises by 8,070 in August
- Nikkei closes up 1.24% at 15,668.60
We’ve seen another session of greenback grabbing and it’s the pound that’s most felt the wrath as concerns also grow over a Yes vote in the forthcoming Scottish referendum.
Early moves were all around the pound with an early drop on cable from 1.6585 to 1.6553 but then spiking to 1.6580 again on strong construction PMI. The failure to make any further though, combined with a better bid tone to USD, signalled renewed selling taking out the 1.6350 bids and posting lows of 1.6517 before bouncing to 1.6538.
EURGBP was quick to pick up on the GBP sales and we’ve been up to 0.7940 from 0.7915 and overall the pound has had a bad morning at the office
USDJPY finally pushed on to 105.02 from 104.85 after its Asian surge but yen pairs have been capped by inherent weakness in the other currencies with EURUSD also falling to one-year lows of 1.3110 but finding decent support into the 1.3100 barrier
USDCHF showed little reaction to a much weaker Q2 GDP reading but eventually chewed through some offers into 0.9210 to post 0.9213 before fading along with USDJPYand EURCHF found gains above 1.2080 a step too far
AUDUSD has been stuck around session lows of 0.9285 having failed to get back above 0.9300 after the RBA decision while NZDUSD has remained on the back foot down to 0.8323 ahead of another dairy auction later . USDCAD has ground its way higher to test offers around 1.0920 but retreated in the general USD fade
US ISM mftg PMI out later should provide further fun and games as the week’s story unfolds
