Markets

ForexLive Americas FX news wrap: Manufacturing solid, construction slumps

Forex news for US trading on June 1, 2016:

Markets:

  • JPY leads, GBP lags
  • Gold down $2 to $1212
  • WTI crude flat at $49.16
  • S&P 500 up 2 points to 2099
  • US 10-year yields flat at 1.84%

Euro shorts headed for the exits ahead of Thursday's ECB meeting. It finished near the high of the day at 1.1190 but with strong offers from 1.1200 to 1.1220 capping. The gains started in Europe and were briefly unwound by the ISM manufacturing data but details of the report were soft and the dip to 1.1140 was bought.

GBPUSD under fire for the second day after narrow Brexit polls. One today showed a tie at 40% and along with downgraded OECD forecasts, that outweighed a better Markit UK manufacturing PMI. The selling momentum continued into the UK close but that's where it stopped as a brief dip under 1.44 was bid.

USD/JPY sank in a quick drop in Asia and continued to slide into the start of US trading but it bottomed early at 109.05. It recovered 50 pips by the UK close and then chopped sideways.

USD/CAD was surprisingly quiet despite a drop and then big bounce in oil. The pair hit at session low of 1.3040 at the start of US trading and ramped up to 1.3120 as oil fell. It chopped back down to 1.3074 on the oil rebound but the latest OPEC headlines sound less optimistic.

AUD/USD started US trading at 0.7260 and finished at about the same spot. It dipped to 0.7227 but the Asia low held and it's been creeping slowly higher for the past three hours. Aussie trade balance and retail sales are due later.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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