Forex news and economic data headlines for the European session 3 May 2016
News:
- RBA announcement: Cuts rates by 25 bp
- EU Commission cuts Eurozone 2016 GDP forecast to +1.6% vs +1.7% prev
- EU's Moscovici: Monetary policy can't do everything
- Buba's Dombret doesn't see a significant Chinese slowdown
- Spillovers show closer monetary policy cooperation is needed - ECB's Mersch
- ECB's Coeure says transition to negative rates has happened smoothly
- Spanish elections called for June 26th
- 2016 GDP growth seen at +2.5% - Australian Federal Budget
- RBA to cut rates again by 25bps over next few months - ANZ
- The 100 WMA is next in the frame as EURUSD marches higher
- AUDUSD finds respite after the post-RBA tumble but sellers lurking still
- EURUSD blows through 1.1600 as European equities fall
- Bye-bye USDJPY 106.00 barrier option
- Cable steams through 1.4700 as USD sellers dominate again
- Cable sold again as UK data disappoints
- Option expiries 10am NY cut today 3 May
Data:
- March 2016 Eurozone PPI 0.3% vs 0.1% exp m/m
- April 2016 UK Markit CIPS manufacturing PMI 49.2 vs 51.2 exp
- Switzerland SECO consumer confidence April -15 vs -11 exp
It's been a session where the euro has shone again amidst USD and equity selling but the euro bears lurk still as two-way business continues.
The session began with the Aussie $ tumbling on the RBA cutting rates by 0.25% and the subsequent weight of AUDJPY selling sent USDJPY down through 106.00 never to return above.
That softness once again set the tone for a general USD sell-off that has seen GBPUSD post 1.4770, EURUSD 1.1615, USDCHF 0.9445,USDCAD 1.2460 and even AUDUSD recover from 0.7556 to 0.7630.
Chinks in the USD bears' armour appeared after weak UK mftg PMI data and USDJPY held 105.50 support and that's helped GBPUSD back down to 1.4671 as EURGBP tested 0.7900 from 0.7855. AUDUSD has fallen back to 0.7565 and USDCAD has rallied to 1.2565 aided by oil price falls once again.
The DAX was down around 2% at 9923 at one point before making a small recovery and that has added to a few euro sellers being brave enough to pop their head around the door again. Offers in EURGBP at 0.7900, EURJPY between 125.80-126.00 and EURUSD itself at 1.1625 have all combined to keep a cap on the euro but dip demand still expected.
No data of note to come but a couple of CB heads back up to the rostrum.
