Forex news from the European morning session 2 January 2015
News:
Data:
- UK Markit mftg PMI Dec 52.5 vs 53.6 exp
- UK mortgage approvals Nov 59.0k vs 58.7k exp
- Eurozone Markit mftg PMI Dec final 50.6 vs 50.8 exp
- German Markit mftg PMI Dec final 51.2 vs 51.2 exp
- France Markit mftg PMI Dec final 47.5 vs 47.9 exp
- Spanish Markit mftg PMI Dec 53.8 vs 54.7 in Nov
- Greek Markit mftg PMI Dec 49.4 vs 49.1 prev
As markets re-open for 2015, albeit in limited fashion until Monday, we’ve seen a continuation of the USD demand with particular focus this morning on the pound after weaker data and continuing bearish sentiment in thin liquidity.
We’ve seen a fall from 1.5520 to 1.5420 as I type with the move already in place through 1.5500 before the mftg PMI data release after initial demand in the session from EURGBP selling to 0.7744 as Draghi comments gave a wobble to the euro
Traders were quick to seize on the weaker UK data though and larger fines being levied on RBS and despite a bounce from recent lows of 1.5485-90 back above 1.5500 it was short lived and only wiped its feet around 1.5450 and 1.5425-30
EURGBP rallied strongly up to test resistance at 0.7800 before finally breaking through and posting 0.7815. EURUSD has survived its early wobble to 1.2035 but has since garnered cross play support even thpough rallies above 1.2050 have been limited.
USDJPY finally broke through 120.50 after knocking at the door a couple of times while USDCHF has been camped around 0.9975 after failing to breach 1.00.
USDCAD had a sprightly rally from 1.1620 to 1.1668 before recharging its batteries on a dip to now post 1.1675 while both AUDUSD and NZDUSD have been offered all morning to post lows of 0.8109 and 0.7710.
So it’s USD in favour still as markets step tentatively into the new year.
