Forex news from the European morning session 3 Nov

News:

  • China has conditions to keep economy at medium to high GDP in next 5 years
  • China to speed up reform of the financial system
  • ECB says its policies are impacting on real economy
  • EU says they are encouraged by results of Greek bank assessments
  • Germany's Gabriel says GDP could grow as much as +1.8% in 2015 and 2016
  • Germany's BDI sticks with 2015 GDP forecast of +2.0%
  • Riksbank still worried about inflation
  • ForexLive talks cable, NFPs and rate hikes on Tip TV
  • Option expiries 10am NY cut today 3 Nov

Data:

  • UK Markit/CIPS construction PMI Oct 58.8 vs 58.8 exp
  • Spain unemployment net change Oct mm 82.3k vs 71.0k exp

It's been a scrappy/lacklustre session but one that's seen the greenback feel a bit of love again as traders try the other side, with the euro feeling most of the pain

After a slow start we saw USD demand across the board with EURUSD leading the way down through 1.1000 where large option expiries roll off later. Lows of 1.0970 dragged EURGBP down to 0.7116 from 0.7130 lending a little support to cable after falling to 1.5403 from 1.5430 before then dropping through to post 1.5380 as I type

USDJPY had a wander up to 120.90 from 120.70 but was weighed by EURJPY selling and good offers into 121.00 while USDCHF similarly rallied from 0.9845 to post 0.9908 but tempered by EURCHF supply

USDCAD also enjoyed the ride to 1.3128 from good demand at 1.3080 before running out of steam while AUDUSD and NZDUSD have both found themselves on the back foot to 0.7171, after its post-RBA gains to 0.7218, and 0.6703 from 0.6785

US factory orders to come at 15.00 GMT might give us some clues as to whether this USD demand can be sustained.