Forex news for US trading on June 2, 2016

Draghi/ECB:

  • ECB's Draghi: Will keep rates at current or lower levels for an extended period
  • Full text of Draghi's introductory statement
  • ECB sees weaker consumption, a higher euro, and lower global growth in June forecasts
  • ECB is seeing no difficulty in implementing QE says Draghi
  • ECB raises 2016 growth forecast to 1.6% vs 1.4% in March projections

OPEC:

  • OPEC fails to reach supply quota agreement, delegate says
  • No mention of any output ceiling in OPEC communique - report
  • OPEC sec gen: We need time to decide oil how much we produce
  • Saudi oil minister: OPEC may not return to previous style of managing market

Other headlines

  • US initial jobless claims w-e 28 May 267k vs 270k exp
  • ADP May US employment 173K vs 173K expected
  • Bill Gross: The good times are over
  • Fed's Kaplan: US consumer in relatively good shape
  • Junker: Trying to deliver our political priorities
  • BOC's Schembri says that there's a divergence across the Canadian economy
  • EIA US oil inventories -1366k vs -2500k exp
  • Germany isn't in a bad situation economically says Schaeuble

Markets:

  • S&P 500 up 6 points to 2105
  • JPY leads, AUD lags
  • US 10-year yields down 3.6 bps to 1.80%

Simultaneous meetings of the ECB and OPEC both took place in Vienna. Neither delivered anything or sent a strong signal.

ECB forecasts on inflation weren't hiked as much as anticipated and that put a negative bias into euro trading after a period of volatility during the press conference. EUR/USD slowly fell to 1.1150 from 1.1200 before trading started.

For OPEC, there was some talk yesterday of the reintroduction of production quotas but nothing materialized and oil initially tumbled before bouncing back to $49.00.

USD/JPY was under some solid pressure early as it fell to 108.55 from 109.00 as risk aversion climbed but it slowly recovered back to 108.83 with the stock market finding its legs and closing at the best level of the year.

Cable attempted a rebound and hit a session high of 1.4470 in early US trading but Brexit worries are really starting to take hold and it sank down to 1.4416, finishing near the lows of the day.

I got a call from someone today asking me if they should take their money out of the UK and GBP, so the fears are starting to hit main street.