Forex news headlines and economic data for the European session 6 June 2016
News:
- Fed's Rosengreen says US getting closer to reaching conditions for rate hike
- Yellen unlikely to be spooked by poor NFPs report say Goldman Sachs
- USA's Lew says Chinese economy undergoing necessary but difficult change
- ECB's Nowotny says phase of acute deflation risk is over
- ECB's Smets does not anticipate a new "decision moment"
- ECB will do whatever we need to fulfil our mandate says Liikanen
- Bank of Italy lowers GDP forecasts
- Current account deficit and the UK economy - More from John Hearn
- China will continue to implement pro-active fiscal policy
- Pound under pressure again as latest Brexit poll shows Leave in front
- Option expiries 10 am NY cut today 6 June
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Data:
- Germany factory orders April mm -2.0 vs -0.5% expected
- Eurozone Sentix investor confidence Index June 9.9 vs 7.0 expected
- Germany Markit construction PMI May 52.7 vs 53.4 prev
It's been a session of mixed fortunes for the pound, and indeed the US $, as the NFP aftermath and Brexit fears continue to play out.
GBPUSD had tumbled in Asia on Brexit poll results but held onto 1.4350 and as USDJPY steadied below 107.00 we saw good demand for GBPJPY lift us up back to 1.4463 and 107.28. Then another poll release was published with Leave in front and down we went again to 1.4365 before running into dip-demand and currently back to 1.4420 as I type. EURGBP accordingly has been up to test 0.7900, back to 0.7854 before bouncing to 0.7885 then 0.7870 again. Certainly no shortage of intra-day opportunity.
With USDJPY capping we've seen pressure on core pairs too which has seen EURUSD down to 1.1332 with EURCHF supply preventing USDCHF from taking any advantage and largely pinned around 0.9745.
AUDUSD had an Asian wobble with macro accounts selling down to 0.7317 but AUDJPY demand has helped the pair rally above 0.7360 again. USDCAD has been pinned down between 1.2940-80 by tight oil range and cross play crossfire. Firmer oil overall has helped put a cap on CAD.
NZDUSD has similarly been in a tight range between 0.6910-40 with cross play having a nullifying effect.
Nothing of note on the data front so attention turns to the speech at 16.30 GMT by Janet Yellen. Markets remain in fragile mode.
