Forex news from the European morning session - 12 November 2019
Headlines:
- Reminder: Trump to deliver trade speech later today
- Germany November ZEW survey current situation -24.7 vs -22.3 expected
- UK September average weekly earnings +3.6% vs +3.8% 3m/y expected
- Nigel Farage: We will give no more ground to the Conservatives
- What is the market pricing in ahead of the RBNZ decision tomorrow?
Markets:
- USD leads, NZD lags on the day
- European equities higher; E-minis up 0.1%
- US 10-year yields flat at 1.942%
- Gold down 0.2% to $1,452.70
- WTI up 0.6% to $57.18
- Bitcoin flat at $8,732
Markets remained quiet for the most part as all eyes now turn towards US president Trump's speech on trade later today.
The kiwi held weaker after poor NZ data, which led to increased odds of an RBNZ rate cut tomorrow. NZD/USD stayed lower around 0.6330-40 throughout the session.
Meanwhile, the pound eased further from overnight highs as cable fell from 1.2850-60 to a low of 1.2816 as Nigel Farage said he wouldn't offer more help beyond contesting Labour-held seats in the election.
There was also modest strength in the dollar during the session and that added to weakness in the likes of GBP/USD and EUR/USD.
The risk mood is seemingly more steady so far today, with USD/JPY trading around 109.15-30 for the most part. Equities are recovering slightly but markets remain cautious still ahead of Trump's speech today.
Looking ahead, markets are still in a state of flux to begin the new week so let's see if Trump will provide any fresh catalysts to trigger some lasting moves over the next few days.
