Forex news from the European morning trading session 3 December 2014
News:
- France confirms 2015 public deficit to be cut to 4.1% of GDP
- EU says the Troika and Greece are still discussing budget issues
- DXY posts highest level since March 2009
- Preview – What’s George Osborne got left in his box for the Autumn Statement?
Data:
- UK Markit/CIPS services PMI Nov 58.6 vs 56.5 exp
- Eurozone Markit services PMI Nov final 51.1 vs 51.3 exp
- Eurozone retail sales Oct mm +0.4% vs +0.5% exp
- Swiss Q3 GDP qq final +0.6% vs +0.3% exp
- German Markit services PMI final 52.1 vs 52.1 prev
- France Markit services PMI Nov 47.9 vs 48.8 exp
- Italian Markit services PMI Nov 51.8 vs 50.2 exp
- US MBA mortgage market index 347.0 vs 374.5 prior
- Spain Markit services PMI Nov 52.7 vs 55.2 exp
- Irish services PMI Nov 61.6 vs 61.5 prev
- Nikkei 225 closes up +0.32% at 17,720.43
It’s been a morning short on rhetoric, and to an extent data, but one in which we’ve seen the US $ in demand again with USDJPY testing 119.50 and USDCHF posting 0.9766 but it’s the euro that’s taken a kicking with EURUSD down to 1.2322 leading the way
EURGBP has broken down through the stubborn support at 0.7900 to test the next key level around 0.7865 as I type while EURJPY has dropped to 147.04 from 147.90. Weaker services PMI data from the Eurozone only added to the bearish sentiment as markets try to second-guess Draghi & Co tomorrow
GBPUSD has also come under attack down to 1.5618 from 1.5670 but has found support from the EURGBP selling and stronger than expected services PMI . Overall though the pound is holding up ok as other ccys step into the spotlight. Today’s UK Autumn budget statement is expected to provide little by way of surprise.
AUDUSD has shown some life after the GDP led drop to 0.8388 while USDCAD has found itself in two-way trading between 1.1370- 1.1400. NZDUSD too has found a little support into 0.7760 after failing to hold 0.7800
Plenty going on still. Long may it continue
