Wednesday 4th June: European Open Briefing.

By IC Markets Trading Desk

Global Markets:

  • Australia (AUD) Gross Domestic Product (Q1) (y/y): 3.5%, Expected: 3.3%, Previous: 2.8%
  • New Zealand (NZD) ANZ Commodity Price (MAY): -2.2%, Previous: -4.0%
  • Australia (AUD) AiG Performance of Services Index (MAY): 49.9, Previous: 48.6
  • United Kingdom (GBP) BRC Shop Price Index (MAY) (m/m): -1.4%, Previous: 1.4%
  • Asian stock markets: Nikkei up 0.10 %, Shanghai Composite down 1 %, Hang Seng lost 0.60 %, ASX fell 0.50 %
  • Commodities: Gold at $1245.90, Silver at $18.80, Crude Oil at $102.82
  • Bonds: US 10 year yield at 2.59


FX Update:

  • AUD – Australian GDP beat expectations and AUD/USD reached a high of 0.9295. Offers pre-0.93 proved tough however and the pair has almost retraced all the post-GDP gains. Like in most pairs these days, playing the range seems the most favorable strategy for AUD/USD, buying ahead of the 0.92 barrier and selling into rallies towards 0.93/0.9310. Cross flows were positive, led by AUD/NZD buying. The pair broke above 1.10 and likely to attract further demand from leveraged names on a daily close > 1.10.
  • CAD – USD/CAD shorts are slowly getting squeezed out of their positions as the pair hit a session high of 1.0935 earlier. The rally has stalled ahead of 1.0940/50 offers, but stops in good size are reported above 1.0950. The focus today lies on the Bank of Canada rate decision. The bank is expected to leave rates unchanged at 1.00 %, but traders will pay close attention to the Poloz press conference, which will be held shortly after the rate decision.
  • EUR – EUR/USD saw steady selling from leveraged names during the past two sessions, especially on the rally to 1.3650. The pair will stay offered pre-ECB and any gains should be capped at 1.3650/60. The dip to 1.3585 yesterday attracted good buying and banks see bids rebuilding around that level. Stops seen through 1.3575.
  • JPY – USD/JPY extended gains to 102.78 and dealers are reporting of solid offers from hedge funds above 102.80. To the downside, bids building at 102.45/50 and 102.20.


Upcoming Events:

  • 07:15 GMT – Spanish Services PMI (56.1)
  • 07:45 GMT – Italian Services PMI (51.5)
  • 07:50 GMT – French Services PMI (49.2)
  • 07:55 GMT – German Services PMI (56.4)
  • 08:00 GMT – Euro Zone Services PMI (53.5)
  • 08:30 GMT – UK Services PMI (58.2)
  • 09:00 GMT – Euro Zone GDP (0.2 % QoQ, 0.9 % YoY)
  • 12:15 GMT – US ADP Nonfarm Employment Change (213k)
  • 12:30 GMT – Canadian Trade Balance (-40.5B)
  • 14:00 GMT – Bank of Canada Interest Rate Decision (unch, 1.00 %)
  • 14:00 GMT – US Non-Manufacturing PMI (55.5)
  • 18:00 GMT – US Beige Book


Source: ICMarkets Analysis

About the Author
IC Markets is one of the world’s only True ECN forex brokers providing trading solutions for active day traders and scalpers as well as traders that are new to the forex market. IC Markets offers its clients cutting edge trading platforms, low latency connectivity and superior liquidity. IC Markets is revolutionizing on-line forex trading, on-line traders are now able to gain access to pricing and liquidity previously only available to investment banks and high net worth individuals. Visit IC Markets Website [space height="20"] [social type="facebook"][/social] [social type="twitter"][/social] [social type="google-plus"][/social] [social type="youtube"][/social]

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