Forex news from the European morning session - 14 February 2020
Headlines:
- Singapore reports 9 new coronavirus cases, overall tally now at 67
- Eurozone Q4 GDP second reading +0.1% vs +0.1% q/q prelim
- Risk still hinting at indecision in European morning trade
- Germany January wholesale price index +0.3% vs 0.0% m/m prior
- Germany Q4 preliminary GDP 0.0% vs +0.1% q/q expected
- Singapore prime minister says that recession could be a possibility
Markets:
- CAD leads, CHF lags on the day
- European equities mixed; E-minis up 0.2%
- US 10-year yields down 2.9 bps to 1.588%
- Gold flat at $1,576.60
- WTI up 1.2% to $52.02
- Bitcoin up 0.5% to $10,236
It was a quiet session in the European morning as investors are pretty much waiting on Wall St for a sense on how to proceed with the risk mood ahead of the weekend.
The past three Fridays have seen elements of risk aversion but after brushing aside the pessimistic mood yesterday, there is some indecision about how risk may trade going into the weekend - especially with the US observing a break through Monday.
European equities traded mixed with US futures keeping mildly higher, but Treasury yields are keeping lower on the day with 10-year yields down by nearly 3 bps to 1.588%.
As such, USD/JPY is little changed and trades around its key hourly moving averages between 109.75-85 during the session. The dollar was also little changed against the likes of the euro, aussie and kiwi as the sentiment remains torn for now.
The franc is keeping a little weaker as EUR/CHF moves off lows close to 1.0600 while the loonie leads gains amid higher oil prices but USD/CAD is still struggling to break below the 23.6 retracement level of the swing move higher @ 1.3240.
The pound is also keeping a little weaker amid choppy trading for cable as price moved up to 1.3063 before retreating to 1.3020 and settling just above that now.
Looking ahead, it's all about the risk mood and whether or not we will see yet another day of caution amid coronavirus fears and uncertainty to wrap up the week.
