Forex news from the European morning session - 10 December 2019
Headlines:
- Germany December ZEW survey current situation -19.9 vs -22.0 expected
- UK October monthly GDP 0.0% vs +0.1% m/m expected
- China November M2 money supply +8.2% vs +8.4% y/y expected
- Stocks pushed lower in European morning trade
- China foreign ministry urges US to drop cold war mentality for a stable relationship
- Key risk events later this week continue to cast a large shadow over markets
Markets:
- GBP, CHF leads, AUD lags on the day
- European equities lower; E-minis down 0.3%
- US 10-year yields down 1.7 bps to 1.801%
- Gold up 0.4% to $1,467.95
- WTI down 0.7% to $58.63
- Bitcoin down 0.1% to $7,346
US-China trade headlines may have gone quiet to start the week but the silence is deafening as risk turns more defensive in trading today.
European stocks are bearing the brunt of the risk-off flows as the DAX slips to its weakest level in five weeks. That has helped the franc gain on haven demand with USD/CHF also easing to its weakest level since 4 November.
Bond yields inched a little lower but nothing too extravagant with US futures also getting nudged slightly lower amid more caution being thrown to the wind ahead of the key 15 December tariffs deadline.
That helped USD/JPY move lower from 108.65 to 108.51 but the pair is keeping more flat currently as we look towards North American trading.
The pound continues to stay perky ahead of the election in two days' time with the Tories still looking favourites to claim victory. Cable hit a 8-month high of 1.3190 but is hovering around 1.3170-80 levels currently.
Other than that, the softer risk mood is weighing a little on the aussie and kiwi but nothing too notable for the time being. AUD/USD is looking towards testing the 0.6800 handle but the kiwi is still rather resilient in the bigger picture.
Looking ahead, it's still all about the anticipation of the key risk events later this week with the Fed, SNB and ECB meetings still due, alongside the UK election and US-China trade developments also being eyed.
