Forex news and economic trading headlines 5 July 2016
Carney: Any BOE monetary policy action will need to be well aimed
There was already evidence of slowing investment before the Brexit vote says Carney
Carney: Drop in sterling will support exporters
French PM Valls to use emergency measures to bypass labour laws - Livesquawk
BOE: Cuts regulatory buffers, will increase bank lending by up to £150m
What levels are lurking beneath 1.3100 in GBPUSD?
May 2016 Eurozone retail sales 0.4% vs 0.4% exp m/m
Forex market orders 5 July 2016
There was no FX intervention in June says UK Treasury
June 2016 UK Markit CIPS services PMI 52.3 vs 52.8 exp
Spain and Italy lead the way in the service sector
June 2016 Eurozone Markit services PMI 52.8 vs 52.4 exp
June 2016 German Markit services PMI final 53.7 vs 53.2 exp
June 2016 French Markit services PMI 49.9 vs 49.9 exp
June 2016 Italian Markit/ADACI services PMI 51.9 vs 50.2 exp
There's no reason for further rate cuts says ECB's Lautenschlaeger
Euro in demand as Italy rides to the rescue of its banks
June 2016 Spanish Markit services PMI 56.0 vs 55.3 exp
If you want better GDP, change how you calculate it - China revises GDP
Pound traders are likely to be nervous ahead of the UK services PMI
RBA leaves AUD ping ponging between 0.7500 and 0.7545
Forex option expiries for the 10 am (14.00 GMT) New York cut 5 July 2016
Full statement from the RBA and what has changed since June
RBA leave cash rate ON HOLD
Aussie PM Turnbull comments on election - votes show discontent with major parties
PBOC Panel Says Don’t Underestimate Complexity of Economic Risks
U.K. Business Expectations Fall ‘Off a Cliff’ After Brexit Vote
NZD traders - Dairy auction on today during London time
Given a couple of negative UK headlines during Asia, and the possibility of the UK services PMI catching the same cold as the construction PMI yesterday, it was no surprise to see the pound on its backside once again as London opened. From sitting steady around 1.3240, we has a pretty swift move through 1.3200 to 1.3180 before slipping further to 1.3160. The PMI wasn't didn't miss by all that much and for a minute it looked like the quid was going to stabilise. It didn't and the next stop was 1.3130 followed by the low at 1.3115 as the gaze switched to the BOE and Carney. There had been chatter that he might divulge some of the tools the MPC might be using but his FPC hat was stuck firmly on his head and (so far as he's still talking) we've had next to nothing. That's sent GBPUSD back up towards 1.3200 but it's already run into trouble at 1.3190 and is back to 1.3164.
EURGBP was a strong influence after finally breaking 0.8400 and it had the legs to try a shot at 0.8500, coming up 10 pips short. It has dropped to 0.8450 before finding support and we're back at 0.8475
EURUSD has been up and down. There was some following of the cable fall that turned around as EURGBP took off. The spike to 1.1186 was also helped by news from Italy that they will be using the fine print of EU law to circumvent state aid to prop up their banks. Monte Paschi looks like they'll be the main beneficiaries. That spike ran out fuel and we came back to 1.1130 before having another little run to 1.1165
USDJPY seems the forgotten pair at the moment. Yen cross play was in effect again as GBPJPY was hit hard for nearly 300 pips. It broke 102.00 yet it's been a slow slog to get to the low at 101.65. 101.80 resists as I type.
AUDUSD cleared the non-event that was the RBA announcement without too much fuss. The 0.7540 level is still flexing its muscles and support at 0.7500 is trying admirably to hold up despite the odd breach. It's looking a tad heavy as we head into the US sesh so further downside is not out of the question.
The US will ease themselves back into things today. The holiday hangovers get a couple of extra hours to clear as there's no real data until factory orders at 14.00 GMT. Those also contain the durable goods revisions, which can be fun.
