Forex news for US trading June 2, 2015:

  • Fed's Brainard: Economic slowdown may be more significant than expected
  • US April factory orders -0.4% vs -0.1% expected
  • May US auto sales 17.79m vs 17.20m
  • Fonterra GlobalDairyTrade price index down 4.3%
  • Eurogroup will pour over the Greek deal on Wednesday
  • Eurogroup President says creditors 'still far from a deal with Greece'
  • May 2015 US New York ISM 54.0 vs 58.0 exp
  • "Cash for reform deal" agreed by EU, ECB and IMF
  • FIFA President Sepp Blatter quits
  • Gold up $4 to $1193
  • WTI crude up $1.10 to $61.30
  • S&P 500 down 1 point to 2111
  • US 10-year yields up 8 bps to 2.26%
  • German 10-year yields up 17 bps to 0.71%
  • AUD leads, USD lags

If you're waking up in Asia and checking on the euro, you probably think there was a deal in Greece but that's not the case at all. Greece and the Eurozone creditors formerly known as the Troika submitted to each other competing bailout proposals. As news of that broke and Eurozone CPI was a bit higher, the euro began to rally.

From there, signs were mixed. Dijsselbloem cast doubts and there were reports that the drafts were unbridgeable but US dollar bulls never got back on their feet and the squeeze continued unabated except for some periods of consolidation. EUR/USD took off to 1.1192 from 1.1040 shortly after US traders arrived. The pair then consolidated at 1.1125 but a second rally took it back to 1.1175. Large offers protected 1.1200.

As the euro gains extended it created broad US dollar selling that began to feed on itself. The dovish comments from Brainard added to the rout. USD/JPY broke below the European low of 124.40 and quickly to 124.00, a bounce and then a fall to 123.77. It was able to hold that low for the remainder of the session and finishes at 124.08.

Cable and the commodity bloc currencies were able to continue to fresh highs late in the day. Cable hit 1.5343 on the initial push but the beaten-up pound finally had a reason to rally after 7 days of declines and continued later to 1.5368 after a few hours of consolidation.

USD/CAD tumbled down to 1.2425 from 1.2500 and then fell further to 1.2370 as oil took advantage of the weak US dollar and climbed to $61.50.

The Aussie had a tailwind from the RBA decision and pressed the advantage, finishing the day 2.25% higher at 0.7775. Offers at 0.7800 are holding but it was an impressive reversal after declines in 11 of 13 sessions.