Forex news from the European morning session - 12 September 2019
Headlines:
- CBRT announces cut to one-week repo rate to 16.50% from 19.75%
- China reportedly looking to narrow scope of trade negotiations with US to break deadlock
- OPEC+ statement: Important for all countries to reach full conformity with output cuts
- Eurozone July industrial production -0.4% vs -0.1% m/m expected
- BOJ officials reportedly said to see the need to keep a lower limit on yields
- IEA: OPEC+ faces daunting challenging in managing the market in 2020
- Germany's Scholz: Savers need not reckon with negative rates across the board
- Chinese commerce ministry says that US, China mid-level trade teams to meet soon
- Gold and bonds keep their focus on the ECB
- Trump's tariffs delay is positive - Chinese media
- China is considering US farm imports ahead of talks as sign of goodwill
Markets:
- NZD leads, JPY lags on the day
- European equities mixed; E-minis up 0.1%
- US 10-year yields down 1.7 bps to 1.721%
- Gold up 0.4% to $1,503.24
- WTI down 0.8% to $55.30
- Bitcoin up 0.4% to $10,142
Markets are keeping to their own ahead of the ECB monetary policy decision to come with steadier tones observed for the most part in trading today.
Equities and risk currencies are slightly buoyed after Trump delayed tariffs on China and China offering compromising signs of working towards a trade deal in October. US futures climbed to post 0.3% gains but that fizzled out as we worked through the session.
The aussie and kiwi are holding gains for the most part but are off earlier highs as markets seek more calm ahead of the ECB. Meanwhile, the yen tracked higher with USD/JPY slipping from 108.00 to 107.80-90 levels amid weaker bond yields on the session.
Despite hints of trade optimism, bond traders keep their focus on the ECB ahead of a potential QE announcement to follow later on. As such, that has kept gold underpinned during the session too with bullion rising back above $1,500.
The dollar is more mixed as the euro holds slightly firmer but nothing too notable as EUR/USD price remains trapped between key hourly moving averages going into the ECB decision.
Meanwhile, oil gave up earlier gains as the OPEC+ JMMC meeting amounted to nothing with members discussing about compliance to output cuts more than anything else.
It's all down to the ECB decision now and we're less than 30 minutes away from that. As mentioned here, it's not going to be a straightforward one for the euro and for risk assets so make sure to pay attention to the details!
