Forex news for US trading June 4, 2015:

  • Greece to miss IMF payment and asks to bundle them up
  • EU official says bundling of Greek debt payments a bad sign
  • US initial jobless claims 276K vs 279k exp
  • Fed's Tarullo: Question for Fed was whether Q1 slowdown was temporary
  • May 2015 Canadian Ivey PMI 62.3 vs 55.5 exp
  • Q1 2015 US labour cost revisions 6.7% vs 5.9% exp
  • IMF says Fed should delay rate hike until H1 2016 and cuts 2015 GDP to 2.5% from 3.1%
  • IMF's Lagarde: Fed should raise rates gradually and Fed would be better off hiking in early 2016
  • May 2015 US Challenger layoffs 41,034 vs 61,582 prior
  • EU/IMF plan will unlock €10.9bn from EFSF if deal is agreed
  • Gold down $8.40 to $1177
  • WTI crude down $1.48 to $58.16
  • US 10-year yields down 6 bps to 2.30%
  • German 10-year yields down 4 bps to 0.84%
  • S&P 500 down 18 points to 2096
  • GBP leads, AUD down

The US dollar bounced after two days of declines but it probably wasn't as much as you'd hope for if you're a dollar bull. Still the turnaround in the euro is intriguing. The 130 pips jump in European trading began to fade in Europe but completed the job in US trading. Later in the day, a session low of 1.1223 breached yesterday's post-ECB lows and that's a bearish signal.

USD/JPY found a solid bid in US trading, starting at 124.10 and steadily climbing to 124.68 but the high matched yesterday's high and couldn't break. Signs of a double top sparked some profit taking and in the US afternoon, sellers drove the pair back down to 124.35, especially as stocks slumped and Treasuries outperformed.

Cable consolidated after the jump early in Europe. The rally to 1.5425 stumbled, but unlike the euro, there were no session lows in US trading. The pair consolidated in the 1.5350 to 1.5400 range, finishing near the lower bound.

USD/CAD was briefly hurt but the Ivey PMI but that only proved to show the tremendous underlying demand for the pair as sellers quickly stepped in and it retook the 60 pip loss in minutes. Yesterday's high of 1.2509 is being tested at the moment. Last at 1.2499.

AUD/USD had a textbook bounce to the Asian, pre-data lows at 0.7760 but double-topped there and then began a steady slump as US traders arrived to see the dismal Aussie trade balance and retail sales numbers. A steady slide to 0.7664 ensued, which is a zone I highlighted after the data.

Oil was on the defensive as the US dollar rebounded. It's a tentative market with OPEC due up next. It seems the sellers are the most worried as prices fell to a one-week low.

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