Forex trading news and economic data 4 July 2016
China's economic operation is stable says PBOC
AUD shakes off election counting farce to break into 0.7500
Germany: EU budget rules must be adhered to, generally
UKIP's Farage steps down
May 2016 Eurozone PPI 0.6% vs 0.3% exp m/m
July 2016 Eurozone Sentix index 1.7 vs 5.0 exp
June 2016 UK Markit/CIPS construction PMI 46.0 vs 50.5 exp
SNB Swiss sight deposits 507.51bn vs 501.23bn prior
UK will barely escape a full-fledged recession says S&P
Italy will respect EU rules on banking sector
June 2016 Spanish unemployment -124.3k vs -100k exp
BOJ should refrain from easing further says EX-BOJ's Shirai
European session trade ideas - Independence Day special
Forex option expiries 4 July 2016
Economic data calendar 4 July 2016
Not a lot to report today as markets take an extra breather courtesy of the US holiday.
The pound suffered a kick in the acorns as construction not only fell but fell into contraction for the first time since 2013 but to the lowest level since 2009. The sector had been a beacon of light in the recovery but it's fallen off the cliff thanks to the Brexit wolf. Luckily there's a fence around the pound cliffs so its fall was limited to less than 50 pips from around 1.3290. We recovered that back but 1.3300 is the current no-go area and we've just nicked a new low for the session at 1.3237 as EURGBP has another look at 0.8400. Pick your poison with that one.
The euro pretty much did the same as the pound. It was aided by far worse than expected economic sentiment among Europe's investors. A two pip look under 1.1100 recovered to 1.1133 but that looks shaky right now as we trade to 1.1120.
AUDUSD is showing some aussie grit as it ignores election shenanigans. 0.7500 is broken once again but we've found the 0.7530 level hard to break. It's not out of the woods yet as there's no strength in the knock backs from up here.
USDJPY is doing nowt. It looked softer after an EX-BOJ board member said the BOJ should hold off easing. We've moved the princely sum of 25 pips since I sat down so that says pretty much everything.
With the US out blowing their hard earned on fireworks and the rest of the paraphernalia that goes with celebrating Independence Day, this afternoon should be quiet but that in itself brings its own risks with the reduced liquidity, so be careful about headlines having a bigger impact in prices.
