Forexlive European FX News 1 Jun.AUD and Sterling under the pump

Author: Matthew Bacon-Hall | Category: News

A pinch and a punch to kick off the month

A new month and new beginnings, but some things never change. It has been an interesting morning, and despite relatively narrow ranges there have been opportunities.

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I think it is appropriate to commence with my home currency. We saw a small bounce from Asia's low of 0.7385 early  with sell orders 0.7415-20 filled .Actually 0.7420 has been the high thus far. The bearish sentiment is starting to weigh heavy now, with rallies becoming shallow and sell stops building below the market. Selling on the crosses has been noted as well. From here I favour a break of 0.7385, before an attempt at those 0.7330 stops

Sterling had an interesting morning, with EURGBP flows dominating .The 0.8750 level proved to hard to crack first up, as cable rallied from1.2840 to a session high of 1.2890. Better than expected  Markit PMI help to sustain gains, although the reversal has been typical of Sterling and we now trade 1.2835. EURGBP is back at 0.8750, having looked gone at 0.8715

Euro has been range bound, with a 1.1220-1.1250 range so far. European PMI's were mostly positive, however the market seemed to be influenced more on cross flows .

USD/JPY has been a creeper, with offers  111.15-20 being tested. Range to date, 110.90-111.15.Yen crosses have been fairly subdued, with some selling interest against the Aussie

Kiwi and  USDCAD have been relatively quiet, with Kiwi weaker in sympathy with its Aussie cousin

European equities have remained positive, with Gold and silver a little lower on the day