Forex news from the European morning session - 17 June 2019
Headlines:
- China president Xi Jinping to make state visit to North Korea on 20-21 June
- Bundesbank: German economy to shrink slightly in Q2
- SNB total sight deposits w.e. 14 June CHF 578.5 bn vs CHF 578.1 bn prior
- UBS loses bond mandate as China fallout intensifies
- ECB's Coeure: Central bank has instruments and we've shown that we're ready to use them
- Wilbur Ross: Deal with China can be done but won't come during G20
- ECB's Coeure: Indications on global economy are very bleak
Markets:
- NZD leads, JPY lags on the day
- European equities mixed; E-minis flat
- US 10-year yields up 2.4 bps to 2.105%
- Gold down 0.4% to $1,336.00
- WTI down 1.0% to $51.98
- Bitcoin up 10.0% to $9,300
Markets are in a bit of a lull as traders and investors are all waiting with bated breath on the FOMC meeting this Wednesday. The risk mood was slightly more positive early on but equities are near flat levels now but bond yields are at least still a tad higher on the session.
That is helping push the yen a little lower on the day with USD/JPY rising from 108.50 levels to near 108.70 on the session. The dollar remains a tad lower but most of the weakness is against the euro and kiwi, with the latter holding gains since Asia Pacific trading.
Despite gains in the euro, the trading range against the dollar remains narrow with markets showing little conviction for any firm near-term breaks with one eye on the Fed this week. The pound did inch lower with cable slipping to a low of 1.2572 but is back to unchanged levels on the day currently.
With little on the economic calendar to move things along, market participants will only maintain their focus on Wednesday where the Fed will communicate its latest monetary policy decision. As such, expect some flip flop and mixed sentiment over the next few days before traders commit to a firm directional move after the FOMC meeting.
