Forex news from the European morning session 2 July 2015

News:

  • French fin min Sapin says Eurogroup was unanimous in saying there could be no Greek deal before referendum
  • BOE's Cunliffe says Grexit can not be ruled out
  • EU's Dijsselbloem says Eurogroup reserves the right to accelerate Greek loans
  • S&P says Grexit would cause real Greek GDP to fall 20% below the baseline after 4 years
  • EU's Dijsselbloem says institutional proposals for Greece were "cut to pieces" by Greek leadership
  • Greek minister Pappas declines to comment on talk of Greek govt resigning on referendum Yes vote
  • EU's Juncker says now is the moment for Greek people to choose their future
  • EU's Dijsselbloem says situation in Greece is "dramatically deteriorating day by day"
  • Varoufakis says we will sign on the dotted line on a yes vote
  • ECB casts their QE net further afield
  • Sweden's Riksbank cuts repo rate to -0.35%
  • Preview: ECB minutes - How much has Greece shaken the QE process?
  • Who is at the pinnacle of non farm payrolls forecasting?The competition that all the market is waiting for - The Independence Day non-farm payrolls special
  • Now you can get the news even faster with a Forexlive exclusive offer
  • Option expiries 10am NY cut today 2 July

Data:

  • June 2015 UK Markit CIPS construction PMI 58.1 vs 56.5 exp
  • UK Nationwide HPI June mm -0.2% vs +0.5% exp
  • May 2015 Eurozone PPI 0.0% vs +0.1% exp m/m
  • Spanish unemployment change June -94.7k vs -125k exp
  • Nikkei 225 closes up +0.95% at 20,522.50

Markets have provided some action this morning but for real direction we're still waiting on the NFPs at 12.30 GMT

EURUSD had an early test of 1.1050 but has since recovered some poise although failing to produce news session highs as USD demand prevails. Euro pairs have seen a similar pattern

GBPUSD tested 1.5580 support but then found some love on bettter UK construction PMI data but was unable to hold gains into 1.5620. Overall though the pound has had a decent morning against faster weakening currencies

USDJPY found some support in Asia on a firmer Nikkei and has had little problem chewing higher to 123.60 but is still being influenced by cross plays. USDCHF has also needed little excuse to forge higher again from 0.9460 to test 0.9500 supported by EURCHF climbing to 1.0525 from 1.0470.

AUDUSD and NZDUSD continue to look soggy with the former testing support around 0.7600 while USDCAD has demand in the dips but has been in retreat from 1.2635 highs as oil price firmed

Greek headlines a-plenty but it's the NFPs taking centre stage for the moment