Forex trading headlines 2 July 2014
(Again, the links are black but they are clickable)
- French PM moans about euro strength
- June 2014 UK Nationwide house prices 1.0% vs 0.6% exp m/m
- Japan’s GPIF investment returns have been beating expectations
- The Spanish economy may be on the rise but time may have run out for its citizens
- June 2014 UK Markit/CIPS construction PMI 62.6 vs 59.5 exp
- May 2014 eurozone PPI -0.1% vs -0.1% exp m/m
- EU’s Barroso says situation in Greece and Cyprus has stabilised
- China’s SAFE says it has ended limits for spreads on the USD/CNY exchange rate
- Irish unemployment falls again in June
- Schaeuble says Germany won’t add new debt in 2015 budget
What looked like a quiet session exploded (as much as a 25 pip move can be called an explosion) when UK construction PMI data blew expectations away. Matching yesterday’s manufacturing data for strength. GBP/USD traders were behind the curve for once and taken by surprise ran cable up to 1.7177 and another new high.
The data is likely to keep the pound well bid ahead of the big services PMI tomorrow and the market will be looking for a hat trick of great numbers.
USD/JPY was looking well placed after steadily rising from yesterday’s lows but a late dip in the Nikkei saw us come off the boil from 101.65 to 101.41 late in the morning. Yen was in favour around the crosses and the euro suffered for it. EUR/JPY fell around 40 pips from 138.95 to 138.55 and the double whammy of a falling EUR/JPY and the UK data helped both EUR/GBP and EUR/USD tumble.
EUR/GBP fell through medium term support at 0.7960 and has struggled to regain the level since
EUR/USD found the going too tough at 1.3700 and the sellers took their cue to jump in and knock it back down to important support at 1.3640/50
Another pair failing at a big figure was AUD/USD as it gave up 0.9500to fall back to its own strong support level and former strong resistance at 0.9445/60. 0.9451 is the low so far but there’s been next to no bounce.
It’s all gone a bit flat now as we head towards the US open. A big day tomorrow with the ECB and US non farm payrolls will dampen volatility a bit but today’s ADP jobs, Factory orders and Janet Yellen speaking about monetary policy at the IMF banking conference might throw us a few bones.
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