Forex news for US trading on June 1, 2015:
- US ISM manufacturing PMI May 52.8 vs 52.00 exp
- construction spending April mm +2.2% vs +0.7% exp
- US April PCE core 1.2% y/y vs 1.3% expected
- US personal spending 0.0 % vs +0.2% exp
- US personal income April +0.4 % vs +0.3% exp
- US Markit mftg PMI May 54.0 vs 53.8 exp
- RBC Canadian mftg PMI May 49.8 vs 49.0 prev
- Fed's Rosengren says conditions not reached to start tightening yet
- Fed's Fischer says don't rule out monetary policy to tackle financial crises
- ECB's Nowotny says a failure of QE would mean monetary policy is no longer sufficient
- French jobless total rises 0.7% in April to new record level of 3.5 million
- May 2015 German HICP flash 0.7% vs 0.6% exp y/y
- Saudi oil minister says OPEC strategy is working
- Draghi, Merkel, Hollande said to discuss Greece tonight
- Gold down $1 to $1190
- WTI crude flat at $60.32
- S&P 500 up 5 points to 2115
- US 10-year yields up 6 bps to 2.18%
- USD leads, CAD lags
The day turned on the ISM and construction spending data. It was proof again that the US dollar is hungry for good news. That sent USD/JPY to a fresh 12 year high at 124.92 and up about 75 pips in three separate legs of gains. Offers ahead of 125.00 capped the gains but we finally have a bona fide close above 124.14.
EUR/USD finished the day down more than 60 pips but murmurs about a Greek deal are getting stronger. On the other hand, there's talk of an ultimatum so it could swing either way. The move today was more of a USD-driven move but tomorrow's move will probably be driven by the euro and it could be a large one.
Cable fell for the seventh consecutive day. It's been a currency that's moved in long, consistent swoops in recent months. The post-election glow is now completely off. The low of 1.5171 was the worst since early May.
USD/CAD posted a solid gain, climbing to 1.2560 on the US data but it hit some offers there and pulled back to 1.2521. Oil and commodities were generally lower but not a huge factor.
AUD/USD continued to wilt but at a slower pace. The low was 0.7598 in the 11th loss in 13 sessions. The April low of 0.7553 looms.