Forex news from the European morning session - 10 January 2020
Markets:
- BOE's Tenreyro: We will be discussing possibility of stimulus in the coming months
- BOE's Tenreyro: My inclination is towards a rate cut if downside risks emerge
- Brexit: EU diplomats to meet for seminars on future relationship with the UK starting today
- Ukraine president says will discuss the Iran plane crash investigation with US' Pompeo later today
- Switzerland December unemployment rate 2.5% vs 2.5% expected
Markets:
- AUD leads, CHF lags on the day
- European equities a little higher; E-minis up 0.3%
- US 10-year yields flat at 1.854%
- Gold down 0.1% to $1,550.20
- WTI up 0.2% to $59.66
- Bitcoin up 0.6% to $7,829
It is all about the wait ahead of the US non-farm payrolls as markets keep more calm in general during European morning trade.
Equities are keeping a little higher amid record gains in Wall St yesterday while bonds are also little changed on the session so far. Meanwhile, major currencies are more mixed but largely trapped in relatively narrow ranges amid the lack of catalysts today.
The aussie is keeping a little higher on the retail sales beat earlier today, but AUD/USD is still unable to break key technical levels around 0.6885-93. Any downside move in the pair also remains limited by support around 0.6850 for the time being.
There wasn't much else happening but the pound was rather choppy in general with cable rising to a high of 1.3092 before falling off to 1.3050 as BOE policymaker Tenreyro hinted that she may join the rate cut camp if the UK economic situation worsens.
Amid the lack of interesting price action, we did see EUR/USD 1-year implied volatility fall to a record low of 5.42%. That pretty much sums up how "dead" the pair is these days.
Looking ahead, it's all about the US jobs report to give markets some sense of direction to end the week so let's see what that has to offer in just about an hour from now.
