Forex news from the European morning session 1 Dec

News:

  • Germany's VDA says Volkswagen emissions scandal has caused damage throughout the sector
  • BOE's Carney says UK banks more resilient than before financial crisis
  • BOE says all 7 major UK banks pass 2015 stress tests
  • Bank of Spain's Linde says strong growth to continue in 2016
  • French economy to grow at a rate of +1.4% in 2016
  • Japan's tax revenue to exceed JPY 56 trln in FY2015
  • Reserve Bank of India leaves rates unchanged
  • The ECB meeting and EURUSD according to Goldmans
  • AUDUSD finds 0.7300 a step too far after an impressive rally
  • Option expiries 10am NY cut today 1 Dec
  • Ryan back on the airwaves at Tip TV

Data:

  • UK Markit mftg PMI Nov 52.7 vs 53.6 exp
  • Eurozone Markit mftg PMI Nov final 52.8 as expected
  • Germany Markit mftg PMI Nov final 52.9 vs 52.6 exp
  • France Markit mftg PMI Nov final 50.6 vs 50.8 exp
  • Italy Markit mftg PMI Nov 54.9 vs 54.2 exp
  • Spain Markit mftg PMI Nov 53.1 vs 51.7 exp
  • Eurozone unemployment rate Oct 10.7% vs 10.8% exp
  • Germany unemployment change Nov -13k vs -5k exp
  • Brandenburg CPI Nov mm 0.0% vs -0.1% prev
  • Italy Q3 GDP qq final +0.2% as exp
  • Italy unemployment rate Oct flash 11.5% vs 11.7% exp
  • Switzerland Q3 GDP qq 0.0% vs +0.2% exp
  • Switzerland retail sales yy real -0.8% vs -0.2% prev
  • Australia commodity index Nov -22.0% vs -20.2% prev
  • Japan vehicle sales Nov yy +0.3% vs +0.2% prev
  • Nikkei 225 closes up +1.34% at 20,012.40

After coming in for a bit of after month-end aftershock in Asia the US$ has staged a little bit of a fight-back in this session after suffering early losses

Decent PMI and other Eurozone data saw EURUSD take out 1.0600 resistance/offers to post 1.0619 but the rally was short lived as fresh sellers won the day amidst general USD demand

GBPUSD had also enjoyed the softer US$ start to post 1.5126 from 1.5090 but similarly ran into good supply and, accelerated by weaker mftg PMI, we've been back to 1.5075

EURGBP had risen from 0.7015 with the general euro demand but failed into 0.7035 and retreated back down before finding buyers again as the pound came under renewed pressure

USDJPY found early support from firmer Nikkei and then with added yen pair demand we saw 123.19 from 122.85 while USDCHF also wasn't going to lay down in a hurry and found sold support below 1.0260 to stage a rally to 1.0292

AUDUSD had enjoyed a good rally from 0.7220 in Asia on better data and unchanged rates from the RBA but found 0.7300 a step too far and has since been camped around 0.7285. NZDUSD similarly had a good Asian session but has been in retreat to 0.6640 after failing into 0.6670

USDCAD falls from 1.3350 have been tempered by softer oil prices and demand into 1.3300

Equity markets have seen gains in Europe to follow on from those seen in Asia

US PMI data and Canadian GDP on the agenda to come so let's see what the N Americans make of December so far