Forex news from the European morning session 5 June 2015

News:

  • Economy minister Stathakis says Greece has to remain in the Eurozone
  • EU's Dijsselbloem says Greece needs to take unpleasant measures
  • Germany's Jaeger says Greece would have been able to pay IMF today
  • Greece payment decision is in line with IMF rules says EU
  • EU's Junker says Greece will pre-occupy him this weekend
  • Japan GPIF's Mitani says excessive fx moves are undesirable
  • There's no question of ending QE early says ECB's Smets
  • Bundesbank raises German GDP forecast to +1.7% for 2015 vs +1.0% forecast in December
  • News from OPEC - UAE says decision in November was right, strategy is working
  • OPEC meeting: Kuwait says that OPEC may get a proposal to increase output target
  • Latest BOE survey has public expectations on inflation for year ahead at +2.2% vs +1.9% in Feb survey
  • SNB forex reserves May CHF 517.49bln vs 522.18 prev
  • Option expiries 10am NY cut today 5 June

Data:

  • German factory orders April mm +1.4% vs +0.5% exp
  • Japan leading index CI April flash 107.2 as exp
  • Nikkei 225 closes down -0.13% at 20,460.90

We've seen some far more orderly markets this morning with the euro stealing line honours as bond yield move higher, but in retreat now as focus now to the US jobs data

EURUSD had a steady move up from 1.1210 to 1.1280 helped initially by better German factory orders but then consolidated by bond yields rising again with the German 10s posting 0.9120% only to retreat to 0.867% as I type sending EURUSD back to 1.1225

Euro pairs have politely followed suit with EURGBP up to 0.7361 before falling back to 0.7334 and EURJPY to 140.71 and back to test 140.00 support again

Cable had an early look at 1.5300 on the EURGBP buying but that line held and we've been back to 1.5325 but again capped

Yen pairs saw early support from comments by GPIF boss who said they didn't see a need to prepare for yen strength just yet with USDJPY drifting up to 124.84 highs now from 124.45

USDCAD has found support from softer oil price while USDCHF has shadowed EURUSD but with EURCHF drifting lower

AUDUSD was on the back foot initially from EURAUD buying but has since clawed its way back above 0.7700 on the reversal while NZDUSD has had an equally quiet time of it

NFPs beckon and the order is about to be rudely disrupted. Bring it on.