Currency Analyst since 2010

June 3: Asian session

EUR/USD rose to the levels just above $1.3000. On the upside euro’s capped by the expectations before data forecast to show manufacturing in the currency bloc contracted for a 22nd month (watch the final data for May at 08:00 GMT today) and ahead of the ECB’s meeting on Thursday. The ECB’s President Mario Draghi gave no hints of what to expect from the central bank this week. Watch for ISM manufacturing PMI in the US (14:00 GMT).

GBP/USD went up a bit to $1.5220. The UK will also release May manufacturing PMI (08:30 GMT). USD/JPY is quietly trading around 100.40 on Monday. Today’s data showed Japan’s Q1 capital spending contracted by 3.9% (vs. -6.0% expected). USD/CHF is consolidating at 0.9550. USD/CAD is trading around 1.0370.

AUD/USD is consolidating at $0.9620 following a drop to $0.9550 on Friday. Chinese figures give contradictory signals: on the one hand, Chinese official manufacturing PMI on Saturday has unexpectedly improved (50.8 vs. previous 50.6 and forecasted 49.9). However, a report from HSBC showed today that their manufacturing PMI for China fell from 50.4 to 49.2 (lowest since October 2012). Australian retail sales rose by 0.2% in April following the 0.4% contraction in March (forecast: +0.3%). This week will be eventful for the Aussie traders: watch the RBA meeting on Tuesday and Australian Q1 GDP on Wednesday. NZD/USD holds at $0.7960. On Friday the pair plummeted by 150 pips and closed at $0.7945.

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