Forex news from the European morning session - 15 July 2019
Headlines:
- Trump insists China wants to make a deal, cites earlier Chinese Q2 GDP data
- Trump reportedly considering to remove commerce secretary, Wilbur Ross, after census defeat
- German economy ministry says current data points to a weak general economic trend in Q2
- SNB total sight deposits w.e. 12 July CHF 579.0 bn vs CHF 579.0 bn prior
- China reiterates that it will sanction US firms involved in Taiwan arms sales
- Switzerland June producer and import prices -0.5% vs 0.0% m/m prior
- ICYMI - Trump takes yet another dig at the Fed
Markets:
- NZD leads, GBP lags on the day
- European equities a little higher; E-minis up 0.2%
- US 10-year yields flat at 2.12%
- Gold flat at $1,416.20
- WTI up 0.3% to $60.38
- Bitcoin down 13.1% to $10,353
Markets are steady for the most part to begin the new week with some minor movement among currencies after Chinese data earlier in Asia Pacific trading. Equities and bonds were generally more steady awaiting fresh direction still.
The kiwi and aussie were buoyed by the data release as the details for China June retail sales and industrial production provided some comfort for traders despite overall Q2 GDP slowing to its weakest annual pace in 27 years.
AUD/USD held around 0.7025-35 for the most part in European trading so far after the earlier bump. Meanwhile, NZD/USD also held higher around 0.6720-35 as the kiwi benefited from the data as well as cross-selling in AUD/NZD.
The dollar held steady with minor moves seen in the session, as narrow ranges are prevailing for the most part. EUR/USD bounced around 1.1270-85 while USD/JPY eased a little from 108.05 to 107.85-95 during the session.
The pound held a little weaker though as it is continuing some struggles seen over the past two months, with EUR/GBP looking to try and test 0.9000 again. Cable also fell from 1.2570 to lows under 1.2540 seen currently.
Other than that, the franc held slightly firmer as well with USD/CHF touching fresh two-week lows near 0.9820. I reckon it won't be too long before we start hearing of potential SNB intervention once again.
Looking ahead, it's a quiet one on the calendar in North America as well so we could expect the steady mood to continue until markets settle on a firm focus to start this week. If anything else, it could be yet another week focusing on the Fed again.
At the same time, just be aware that earnings season kicks off this week with financials set to kick start things as usual. We'll get Citigroup reporting today before the likes of JP Morgan, Wells Fargo, and Goldman Sachs tomorrow.
