Forex news and economic data headlines for the European session 4 May 2016
May the Fourth be with you
News:
- Fitch says China slowdown is top global ratings risk
- Fitch says Australian Federal Budget is credit neutral
- Low interest rates can affect bank solvency says Bank of Spain
- Thousands flee Canadian city as forest fire spreads
- Moody's say EU still vulnerable to future shocks despite reforms
- BUBA's Dombret says Brexit is for the UK to decide
- What 5 things are driving markets right now?
- EURGBP drives cable lower again
- Option expiries 10am NY cut today 4 May
- More option expiries of note this week
Data:
- April 2016 UK construction PMI 52.0 vs 54.0 exp
- March 2016 Eurozone retail sales -0.5% vs -0.1% exp m/m
- France trade balance March -€4.368 bln vs -€4.2bln exp
- Eurozone Markit services PMI April final 53.1 vs 53.2 exp
- Germany Markit/BME services PMI April final 54.5 vs 54.6 exp
- France Markit services PMI April final 50.6 vs 50.8 exp
- Spain unemployment change April -83.6k vs -81.7k exp
- Spain Markit services PMI April 55.1 vs 55.0 exp
- Italy Markit/ADACI services PMI April 52.1 vs 51.9 exp
It's been a rather subdued after-party with all the excitement of the past 24 hours still being digested but the pound has once again been on the receiving end of a mixed session elsewhere.
Early USD supply as Europe got going saw GBPUSD up to 1.4558 and EURUSD 1.1511 with USDJPY back down through 107.00 to post 106.74 but since then we've seen more grabbing of the greenback.
The pound came in for special attention again helped by weak UK construction data and we we've been down to test support around 1.4470 with EURGBP rallying further to 0.7941 after initially standing undecided around 0.7900.
EURUSD has fallen to 1.1469 but found some dip demand again albeit losing ground vs JPY as falling equities added to safe-haven yen demand. USDJPY has remained on the back foot around 106.75 and not making any serious attempt to get back through 107.00.
AUDUSD also had an early rally to 0.7517 on the USD sales but similarly was soon in retreat and ultimately tested corp bids into 0.7460 before rebounding.
USDCHF has shadowed EURUSD again with EURCHF in tight range while USDCAD has rallied then fell from 1.2700 to post 1.2778 led by USD demand with oil ranging in tight fashion.
ADP employment change at 12.15 GMT is the next data-risk event and we should expect a lively session ahead with non-mftg ISM, factory orders and durable goods all following,
