ForexLive European morning FX news wrap: Dollar trims losses in mixed trading
Forex news from the European morning session - 12 July 2019
- China says it is to sanction US firms involved in Taiwan arms sales
- ECB's Visco: Further expansionary measures will be needed if Eurozone economy doesn't pick up
- Eurozone May industrial production +0.9% vs +0.2% m/m expected
- BOE's Vlieghe: Policy outlook could easily go in either direction with a cliff edge Brexit
- China June M2 money supply +8.5% vs +8.6% y/y expected
- IEA says OPEC+ cuts do not change the fundamental outlook of an oversupplied market
- BOE's Vlieghe: Rate cuts more likely than hikes if no-deal Brexit materialises
- China June trade balance ¥345.2 billion vs ¥278.5 billion expected
- Turkey says that first parts of S-400 missile system to be delivered to Ankara today
- China's 1H 2019 trade surplus to the US increased by 12% to ¥954.8 billion
- China 1H 2019 exports seen rising by 6.1% relative to a year ago in yuan terms
- Germany June wholesale price index -0.5% vs +0.3% m/m prior
- CHF leads, USD lags on the day
- European equities mixed; E-minis up 0.2%
- US 10-year yields down 1.1 bps to 2.127%
- Gold up 0.3% to $1,408.60
- WTI flat at $60.20
- Bitcoin up 4.7% to $11,670
The dollar remains weaker for the most part in trading today after falling early in Asia Pacific trading. The softer touch continued into the European morning but we did see the greenback claw back some losses against the major currencies bloc during the session.
There weren't many notable headlines as we saw Chinese trade balance data struggle a bit on the imports side amid a rising trade surplus with the US in 1H 2019. Turkey's ongoing arrangement to purchase weaponry from Russia sparked some fear in the lira but there wasn't much else for markets to work with.
Equities remain cautiously optimistic for the most part although European stocks were dragged a little lower amid a profit warning by Daimler, impacting auto stocks for the most part. US futures are up by 0.2% while Treasury yields held mixed during the session to stay slightly weaker currently.
EUR/USD climbed to a high of 1.1275 before erasing gains to fall to around 1.1250 now. GBP/USD similarly crept up to a high of 1.2554 during the session before slipping back to 1.2530 levels currently. The moves are mostly tied to choppiness in the dollar but we're also seeing some yen strength coming in over the past half-hour that is helping to push EUR/JPY lower notably.
AUD/USD and NZD/USD led gains earlier in the session with the former hitting a high of 0.7009 before backing off to near 0.6980-90 levels at the moment as dollar losses eased up.
Looking ahead, markets are still very much in a state of flux trying to get a better grasp of what the future path of the Fed may be i.e. an "insurance rate cut" or the start of an easing cycle? I reckon we'll see a bit of a shift in focus next week but for today, that remains the major focal point in markets to wrap up the week.
As such, expect more choppy price action to continue later in North American trading. Have a great weekend, everyone!