Forex news from the European morning session 7 April 2015

News:

  • RBA announce NO CHANGE
  • Toothless tiger to investigate AUD movement ahead of RBA announcement today
  • Three reasons why the RBA did not trim rates
  • BOE FPC Minutes show concerns about market liquidity
  • EU says the euro working group will meet tomorrow
  • SNB forex reserves March CHF 522.3bn vs 508.9bn exp
  • Option expiries 10am NY cut today 7 April

Data:

  • UK Markit/CIPS services PMI March 58.9 vs 57.0 exp
  • Eurozone Markit services PMI March final 54.2 vs 54.3 exp
  • German Markit services PMI March final 55.4 vs 55.3 exp
  • French Markit services PMI March final 52.4 vs 52.8 exp
  • Italian Markit services PMI March 51.6 v 51.4 exp
  • Spanish Markit services PMI March 57.3 vs 56.2 prev
  • Eurozone PPI Feb mm +0.5% vs +0.1% exp
  • Eurozone Sentix investor confidence April 20.0 vs 20.8 exp
  • Irish Markit services March PMI 60.9 vs 61.4 prev
  • Nikkei 225 closes up +1.25% at 19,640.54

A return to their desks for European traders and with it we've seen a return to buying USD after the NFP-led attack

EURUSD had a weaker tone to it from the off around 1.0930 and was not encouraged by some initial positive PMI data but was quick to fall as weaker French, German and Eurozone data gave the euro bears some renewed vigour. The pair has been down to 1.0834 so far dragging EURJPY down to 130.06 as USDJPY baulks at holding 120.00 and with EURGBP down to 0.7288 from 0.7335 accelerated by better UK PMI data

GBPUSD fared better initally but it too had its own wobble to 1.4875 from 1.4930 and after failing to rally much on the better PMI we saw another test of the 1.4830 support area before rallying back to 1.4900

USDJPY had a brief rally to 120.07 from 119.75 on the USD demand but weighed down by yen-pair selling while USDCHF found good support at 0.9560 to post 0.9644 before running out of steam ass CHF-pairs too headed lower

The Aussie $ kicked off the session with a sharp rally to 0.7711 from 0.7600 as the RBA left rates on hold but the rarified air and the USD demand has seen a return to the pivotal 0.7660 area while NZD has been hit on a double whammy of AUDNZD and USD buying to post 0.7514 from 0.7555

USDCAD meanwhile had its own rally tempered by firmer oil price for the most part and we've spent the session between 1.2460-1.2500

A lively day so far but not one that's necessarily answered too many questions