Forex news from the European morning trading session 2 December 2014
News:
- The RBA made its case for a lower Australian dollar more forcefully today
- Japan’s Abe says markets are calmly accepting Moodys ratings cut
- S&P sees French growth at 0.7% in 2015
- UK construction spreads its wings but is lacking the skills to fly
- Who gets hurt as the Europe/Russia south stream pipeline project gets taken offline
- Will we see 120 in USD/JPY this week?
- Gold back on the slide and posts new session lows
Data:
- UK Markit/CIPS construction PMI Nov 59.4 vs 61.0 exp
- October 2014 eurozone PPI -0.4% vs -0.3% exp m/m
- German car production and exports down sharply in November
- Nikkei 225 closes up +0.42% at 17,663.22
In the absence of data and rhetoric traders have been playing around with both ends of recent ranges as attention drifts once more onto the ECB/NFP main events later this week.
USDJPY had an early pop through 118.50 to post 118.71 in a rush then chewed its way to touch 119.00 before backing off albeit not very far, but it’s been a mixed bag on yen pairs.
GBPUSD saw an early drift below 1.5700 from 1.5720 only to bounce back a couple of times despite weaker PMI data as EURGBP tested 0.7900 once again, but we’ve seen a reversal on both to 0.7942 and 1.5663 since
EURUSD has been caught on the crossfire again posting 1.2430 lows from 1.2470 highs overall but we’ve seen some inherent demand overall as EURCHF posting 1.2046 and EURJPY 148.13
AUDUSD and NZDUSD have also fallen foul of the USD demand with the former staging an early rally from 0.8510 to 0.8543 only to run out of steam and tumble back to 0.8444 with Middle East name the notable seller. NZDUSD had the milk turning sour ahead of the dairy auction and falling to 0.7825 from 0.7870.USDCAD has staged a decent recovery to post 1.1374 as I type after finding support down around 1.1320
A lively session with plenty of opportunity both sides
