Forex news from the European morning session 2 Oct
News:
- IMF says Greece hasn't implemented all promised reforms yet
- Germany's Tiesenhausen urges Greece to stay on track with reforms
- Greek banks need to boost provisions by €10bln
- PBOC considering punitive tax on currency deals
- Irish central bank sees large downside risks for the Eurozone but raises own GDP forecasts
- Solving the mystery of exchange rates: More from John Hearn
- The wisest of the wise NFP pickers make their calls for Non farm payrolls
Pound runs out of puff after better PMI
Option expiries 10am NY cut today 2 Oct
Data:
- September 2015 UK Markit/CIPS construction PMI 59.9 vs 57.5 exp
- August 2015 Eurozone PPI -0.8% vs -0.6% exp m/m
- Spanish unemployment rises by 26.1k in Sept vs 21.1k exp
- Italy Q2 house prices qq -0.1% vs -0.7% prev
- BOJ consumer sentiment survey index Sept -15.2 vs -15.4 prev
- Nikkei 225 closes up +0.02% at 17,725.13
It's been a quiet session understandably ahead of NFPs but not one without some opportunity for the day traders
Early price action saw USDJPY climb back above 120.00 from 119.90 as the Nikkei turned positive into the close but there was little follow through at that time. Eventually though we saw some further buying to challenge 120.25 res/offers again
Firmer European equity markets then had the euro on the back foot with EURUSD dipping below 1.1160 from 1.1180 and EURJPY testing 134.00
EURGBP also dipped further to 0.7358 from 0.7370 when UK construction PMI came in better than expected sending cable to 1.5175 from 1.5145 only to run out of steam and return to from whence it came.
USDCAD has edged higher after finding support into 1.3220 while USDCHF has been underpinned but still unable to breach 0.9800 again
AUDUSD and NZDUSD have also been treading water as the eyes of the financial world stay focussed on NFPs at 12.30 GMT