Forex news from the European session - 13 November 2019
Headlines:
- Heads up: UK PM Johnson to call for end of Brexit 'groundhoggery'
- SNB's Jordan: Swiss franc remains highly valued
- Eurozone September industrial production +0.1% vs -0.2% m/m expected
- Risk continues to turn softer in the European morning
- UK October CPI -0.2% vs -0.1% m/m expected
- PBOC shoots down rumour of digital currency issuance
Markets:
- NZD leads, CAD lags
- European equities lower; E-minis down 0.4%
- US 10-year yields down 6.8 bps to 1.867%
- Gold up 0.6% to $1,465.42
- WTI down 0.7% to $56.40
- Bitcoin flat at $8,760
There wasn't any fresh catalysts to drive markets during the session but risk off flows were the name of the game, as US-China trade talks continue to stay eerily still.
Talks of tariffs being the sticking point and Trump not as upbeat in his speech yesterday did not help with the risk mood, alongside the continued civil unrest in Hong Kong.
The likes of the franc and yen held firmer - though it took the latter a while to get going - with EUR/CHF back under 1.09 while USD/JPY has fallen to a four-day low around 108.80.
European equities tracked lower while Treasury yields are down sharply across the board as markets get a bit jittery ahead of US CPI data and Fed chair Powell's testimony later.
The dollar held steady for the most part as it maintained a narrow range around 1.10 against the euro as cable continues to bounce around its key hourly moving averages today.
Meanwhile, the kiwi stayed firm since Asia Pacific trading after the RBNZ surprised by keeping its OCR unchanged. NZD/USD maintained around 0.6390-05 for the most part.
Looking ahead, it's all about the risk mood today so let's see if we will get any fresh catalysts to shift things around. Otherwise, look towards the US CPI data and Fed chair Powell as the key risk events to wrap up the day.
