Forex news from the European morning session - 18 November 2019
Headlines:
- Bundesbank: No reason to fear that Germany would slide into recession
- Boris Johnson: UK economy still not achieving what it could
- Cable climbs to four-week high, closes in on 1.30 handle
- ECB's de Guindos: Eurozone recession is a very unlikely event
- SNB total sight deposits w.e. 15 November CHF 590.7 bn vs CHF 591.5 bn prior
Markets:
- GBP leads, JPY lags on the day
- European equities lower; E-minis up 0.2%
- US 10-year yields up 1.2 bps to 1.843%
- Gold down 0.6% to $1,459.00
- WTI down 0.2% to $57.57
- Bitcoin down 0.3% to $8,428
It was a quiet session as markets maintained a more steady start to the new week.
The pound was a notable gainer as the currency continued to ride on more favourable election sentiment for Boris Johnson's Conservatives. Cable raced higher from 1.2920 to a high of 1.2985 before backing off slightly to 1.2960-70 levels.
The yen held weaker as US futures and Treasury yields maintained some positive momentum, with USD/JPY creeping higher from 108.80 to just above 109.00 currently. The added push from GBP/JPY is also weighing on yen pairs slightly.
Other major currencies were more subdued as they continue to sit in narrow ranges against the dollar. EUR/USD is stuck in a 20 pips range with large expiries seen at 1.1055 something to consider in the hours ahead as well.
Overall, markets appear to be calm amid hopes of a more optimistic outcome in US-China trade talks. That may yet see US indices score all-time highs again later today but there is no doubt that traders and investors do have some diffidence at the back of their minds.
