Forex news for European morning trading on July 3 2017
News:
- Merkel says key area of CDU/CSU election manifesto is employment
- USDJPY breaks higher again to breach 113.00
- GBPUSD retreats back below 1.3000 as European desks awaken
- May says UK government policy on public sector pay is unchanged
- Moscovici says he has confidence that French government will take the necessary economic measures
- Chinese retail sales expected to rise around 10% in 2017
- PBOC issued a total of 46.77bln yuan via SLF in June
- Forex option expiries for today 3 July
- More option expiries of note this week 4-7 July
- Nikkei 225 closes up 0.11% at 20,055.80
Data:
- UK Markit June mftg PMI 54.3 vs 56.3 exp
- Eurozone Markit June manufacturing PMI 57.4 vs 57.3 exp
- Germany Markit/BME June mftg PMI final 59.6 vs 59.3 exp
- France Markit June manufacturing PMI 54.8 vs 55.0 exp
- Eurozone May unemployment rate steady at 9.3%
- Switzerland June manufacturing PMI 60.1 vs 56.3 exp
- RBA June AUD commodity index 119.5 vs 126.1 prev
- India Nikkei/IHS Markit June manufacturing index 50.9 vs 51.6 prev
- Japan June vehicle sales yy 9.7% vs 6.1% prev
It's been a steady advance for the greenback so far as another week gets underway.
Equities opened firmer and extended gains and that encouraged some risk-on plays that saw yen selling and helped put a bid under USDJPY to rally through 122.80 from 112.55.
The yen pair demand also helped temper the USD buying elsewhere that had seen GBPUSD the first notable faller through 1.3000 early in the session but then recovered some poise before retreating again and given a further kicking by weak UK mftg PMI data from 1.2987 to 1.2968.
USDJPY paused for breath around 112.80 but then we've seen another spike higher through 113.00 resistance to post 113.08 so far.
EURUSD opened up with a dip into 1.1400 from 1.1415 only to bounce back before starting out on a steady decline to 1.1362 with mixed EZ mftg PMI data ( see data headlines above).
AUDUSD and NZDUSD have both wilted under the USD demand while USDCAD has traded tightly between 1.2980-00 as WTI fell to $48.60 from $49.15 before finding a few buyers.
USDCHF has enjoyed the ride higher to post 0.9629 from 0.9585 but tempered by EURCHF falling to 1.0923 before finding support.
US markets closing early today but there is mftg PMI and Ism data at 13.45 and 14.00 GMT. Canada Day holiday will add to reduced liquidity,
