ForexLive European FX news wrap: Risk continues to brush aside virus concerns
Forex news from the European morning session - 12 February 2020
- OPEC cuts Q1 oil demand growth estimate by 440k bpd on coronavirus outbreak
- China says to continue to roll out tax cut measures to alleviate pressure on firms
- Eurozone December industrial production -2.1% vs -2.0% m/m expected
- ECB's Makhlouf: There is a potential for a negative growth shock on coronavirus
- Risk-on mood gathers pace to start the European morning
- Chinese equities make it seven in a row in another solid day of gains
- NZD leads, JPY lags on the day
- European equities higher; E-minis up 0.4%
- US 10-year yields up 2 bps to 1.621%
- Gold down 0.1% to $1,565.97
- WTI up 1.6% to $50.75
- Bitcoin up 1.0% to $10,337
It is all about the risk push in the European morning as headlines were few and far between during the course of the session.
The kiwi remains the lead gainer after the RBNZ kept policy unchanged and reaffirmed its current stance for the foreseeable future, with NZD/USD testing its 100-day moving average around 0.6477 before inching just above that currently.
European equities gained alongside US futures and Treasury yields were also marked higher early on, allowing yen pairs to move higher in early trades.
USD/JPY hit a three-week high of 110.13 before backing off to settle just under the 110.00 level as yields slip back a little from earlier highs.
The aussie also stays underpinned on the better risk mood - also benefiting off the move higher in the kiwi - and that sees AUD/USD move up from 0.6735 to near 0.6750.
The pound and loonie are keeping mild gains with cable inching towards a test of 1.3000, just under the 200-hour moving average. Meanwhile, USD/CAD is backing off further away from 1.3300 as price falls back below both key hourly moving averages.
The market continues to build up hopes that the worst is over on the coronavirus outbreak but caution still needs to be heeded as there are lingering doubts over the impact on the global economy and how things may progress in the days/weeks ahead.