Forex news and economic data headlines for the European session 6 May 2016

News:

  • Non-Farm Payrolls Preview: What six banks are looking to see today
  • Preview: Will Non-Farm Payroll data really affect Fed thinking on rate hikes?
  • Here are 4 trades for Non farm payrolls - Part 1 AUDUSD
  • 4 trades for NFP - Part 2: USDJPY
  • IMF say downside risks have increased for Central, Eastern and South-eastern Europe
  • The Eurozone retail picture isn't likely to have improved in April
  • SNB foreign currency reserves April CHF 587.6bln vs CHF 575.8bln prev
  • Australian foreign reserves April AUD 65.7bln vs AUD 64.3 bln prev
  • Option expiries 10am NY cut today 6 May
  • More option expiries of note next week
  • Nikkei 225 closes down -0.25% at 16,106.72

Data:

  • China Q1 current account surplus provisional +USD 48.1bln
  • Spain industrial output March yy NSA -1.7% vs +5.4% prev
  • Germany Markit construction PMI April 53.4 vs 55.8 prev

The usual pre -NFP shuffling of the cards has seen the US dollar mostly on the back foot as traders square a few positions.

USDJPY was already in retreat from 107.40 early on as the Nikkei pared a few losses into the close and as Europe entered the fray we popped 107.00 to post 106.87. EURUSD wasted little time in getting back above 1.1400 to post 1.1430 with euro buying fuelled by softer equity markets.

EURGBP tested 0.7900 from 0.7870 which in turn capped cable but as the euro retreated so EURGBP gave up and fell back to look at the strong support around 0.7865. That in turn saw GBPUSD move up through 1.4475 to take out 1.4500 offers but run into good supply above 1.4520 yet again.

USDCHF has been on the back foot to post 0.9664 but losses have been tempered by EURCHF which once again finds itself on the rise through 1.1050 with the SNB never too far away it seems.

USDCAD suffered a few losses early on but from 1.2840 we've edged higher as oil turns a tad lower. AUDUSD has remained on the back foot following falls in Asia after the RBA lowered inflation/economic outlook and we've dropped further to post 0.7359 without really making any attempt higher. NZDUSD has suffered a similar knock-on impact.

So it's all about the NFPs now and the bun-fight to follow.