Forex news for US trading, June 8, 2015:

  • Obama says he didn't say he was worried about a strong dollar
  • ECB's Noyer: Greek exit would not cause instability for the Eurozone
  • Noyer says he hopes that this level of volatility doesn't continue
  • We are able to be flexible on QE if need be says Noyer
  • Greek creditors suggested extending bailout until end of March 2016 in return for policy steps - WSJ
  • May 2015 Canadian housing starts 201.7k vs 185.0k exp annualised
  • April 2015 Canadian building permits +11.6% vs -6.0% exp m/m
  • US investigating possible rigging of US Treasury market - Livesquawk
  • G7 is prepared to hit Russia in the pocket further
  • Italy's Renzi says there was no argument over dollar euro rate at G7
  • ECB QE count: PSP €159.60bn vs €146.68bn prior
  • June 2015 US employment trends index 128.6 vs 128.2 prior
  • Spain gets a gold star from the IMF as they raise Spanish growth forecasts
  • ELA is financial stability policy not monetary policy says ECB's Mersch
  • S&P 500 down 12 points to 2082
  • Gold up $2.25 to $1174
  • WTI crude down 60-cents to $58.29
  • EUR leads, USD lags

If you're looking through those headlines and trying to find a reason for a 175 pip gain in EUR/USD today along with large US dollar selling right across the board, I don't think you're going to find it. It's one of those days where you're scratching your head and wondering, why?

For sure, lower Treasury yields and higher bunds contributed and there's some argument that more people are capitulating in that trade. Greece isn't improving, even though Noyer hinted at a deal in a few days. EUR/USD caught a bid early in US trading and it was steadying gains to 1.1288 from 1.1125. No straight-line move exceeded 30 pips but there was relentless buying. At the moment, offers at 1.1300 are holding.

It was a similar story elsewhere as non-farm payrolls gains were completely wiped out -- and more. USD/JPY began US trading around 125.25 and chopped down to 125.00 then bounced to 125.36 on demand at the London fix but it was a steady stream of selling from there, all the way to 124.28, with the last push hitting stops below Friday's pre-NFP low.

Cable got into the act as well. After a fall to 1.5225 in Europe, buyers began to build and the pair climbed to 1.5275 and consolidated below 1.5300. But a second wave of US dollar selling hit and that ran stops up to 1.5350.

The only currency that didn't really take advantage of US dollar weakness was CAD. The pair ranged in a 1.2400 to 1.2450 range as oil prices slipped a bit. It's another puzzle because after Friday's Canadian employment report, that was one currency that still had a reason to beat up on the buck. It may still come with the pair near the lows of the day.

AUD/USD is one of the few currencies that hasn't completely retraced Friday's move but it's close. The pair rallied to 0.7710 and only has 10 pips to go to recover the 120 pip drop after NFP. Look for buy stops above 0.7720/25.