Forex news for the European trading session 5 June 2017
News:
- Latest ICM UK election poll has Conservatives with a 11 point lead
- GBPUSD breaks up through 1.2900 but sellers lurking again
- Russia sees oil prices down USD 40 per barrel after OPEC/non-OPEC deal expires
- Trump says Justice Department "should have stayed with original Travel Ban"
- Tillerson says China should increase efforts to solve North Korea issue
- Forex option expiries for the 10am New York cut 5 June
- Nikkei 225 closes down -0.03% at 20,170.82
Data:
- UK Markit/CIPS May services PMI 53.8 vs 55.0 exp
- Eurozone Markit May services PMI final 56.3 vs 56.2 exp
- Germany Markit/BME May services PMI final 55.4 vs 55.2 exp
- France Markit May services PMI final 57.2 vs 58.0 exp
- Italy Markit May services PMI 55.1 vs 55.4 exp
- Spain May Markit PMI 57.3 vs 57.8 prev
- India Nikkei/IHS Markit May services PMI 52.2 vs 50.2 prev
A session largely easing its way into the week but after the pound's early Asian wobble in the wake of the awful week-end events in London we've seen demand return, helped by latest election poll results.
Softer UK services PMI data did stop it in its tracks a little but overall we've seen a morning of steady GBP gains.
GBPUSD has found a base at 1.2860 and risen to post highs of 1.2914 so far with the only real wobble on the PMI data which saw a move to 1.2865 from 1.2885 before resuming its upward course.
Similarly EURGBP has seen a steady retreat from 0.8760 to 0.8712 apart from a post-data spike that was as quickly reversed. GBP pairs generally have had a good morning with a comatose USDJPY around 110.55-60 helping to underpin GBPJPY at .. GBPAUD had an early fall from 1.7280 to 1.7198 as AUDUSD broke higher to post 0.7486 but has since reversed much of that move with AUDUSD retreating to 0.7470.
EURUSD was unable to build on NY and Asian gains around 1.1280 and has drifted back off to 1.1236 with EUR pairs generally in decline.
Germany and Switzerland are off today for Whit Monday and European equities have largely extended opening losses.
Oil prices have also posted losses from opening levels helped lower by the Russian deputy fin min stating he expects prices to fall back to $40pb after the OPEC/non-OPEC extension runs out.
WTI 15 min
Similarly Brent has fallen to $50.60 to $49.60. USDCAD has duly rallied to 1.3483 from 1.3463 on the weaker oil prices.
USDCHF has found support into 0.9630 and rallied to 0.9657 with the SNB seemingly never too far away. EURCHF has fallen back from 1.0870 to test 1.0850 amid the general euro supply.
US data includes non-farm productivity, unit labour costs , factory orders and services/composite PMI. No CB talking heads scheduled.
