Forex news for US trading on July 2, 2015:

  • US June nonfarm payrolls 223K vs 233K expected
  • Average hourly earnings 0.0% vs +0.2% exp
  • US May factory orders -1.0% vs -0.5% expected
  • Non-defense capital goods orders revised to -0.4% vs +0.4% initially
  • US initial jobless claims w/e 27 June 281k vs 270k exp
  • Canada June RBC manufacturing PMI 51.3 vs 49.8 prior
  • Tsipras says Greek proposal still on the table, despite ultimatum
  • Baker Hughes US oil rig count 640 vs 628 prior
  • Fitch cuts US growth forecasts for 2015 through 2017
  • PBOC gov says they will pursue prudent monetary policy
  • IMF says Greece would need 36B euros of new European money under Athens package
  • ECB's Bonnici says ELA for Greek banks "not an infinite fund"
  • ECB Minutes: QE policy is working but would be premature to declare victory
  • Spain's Rajoy says he expects economy to grow 3.3% in 2015
  • Greek banks running out of cash - AEP
  • Gold down $1.60 to $1167
  • WTI crude down 40-cents to $56.56
  • S&P 500 down 1 point to 2078
  • On the week, S&P 500 down 1.2%, largest weekly decline since March
  • CHF leads, AUD lags

Sweden's Riksbank made a surprise rate cut in European trading and that was taken as a sign that governments and central banks are increasingly concerned about the fallout from Greece. That left markets uneasy but the US dollar was well bid heading into nonfarm payrolls.

But the data was soft and USD/JPY quickly fell to 123.03 from 123.60. On other crosses, the dollar did better, quickly recouping the losses. In particular, it held up well against the commodity block.

The second salvo against the dollar was the factory orders report and that's when the euro and - especially -- the commodity block began to make headway. USD/CAD was particularly impressive as it slide to 1.2538 from 1.2600 despite a decline in oil prices.

Cable recovered from a low 1.5550 which was right at the 50% retracement of the June rally. It shot to 1.5625 on the jobs data but then settled around 1.5605, moving sideways from there.

The kiwi was in a bit of relief rally is it jumped to 0.6719 from 0.6660 on the jobs data and then continued higher to 0.6733. But there it made a double top and is back down to 0.6719.