Forex news from the European morning session - 18 October 2019
Headlines:
- UK government said to not expect any further contact with the DUP today
- Coveney: Ireland would strongly back an extension if Brexit deal is rejected
- China says never posed requirement to fire Houston Rockets GM Daryl Morey
- DUP leader Foster reaffirms that they will oppose Johnson's Brexit deal
- BOE's Ramsden: Smooth Brexit would put rate hikes on the table
Markets:
- NZD leads, GBP lags on the day
- European equities mixed; E-minis flat
- US 10-year yields up 1.4 bps to 1.766%
- Gold down 0.3% to $1,488.17
- WTI up 1.1% to $54.52
- Bitcoin down 1.5% to $7,923
It has been a quiet session for the most part as traders settle on positioning movement as well as crunching the parliamentary numbers as Boris Johnson's Brexit deal heads towards a crunch vote in Westminster tomorrow.
As it stands, there is a lot of push and pull in the rhetoric but so far there is still doubts lingering over whether or not he can win majority support tomorrow.
The pound though, remains unfazed for the most part as cable inched off lows of 1.2840 to post a high of 1.2920 before settling around 1.2860-90 currently.
Price action is still rather volatile as traders brace themselves for the crucial showdown over the weekend in the UK parliament.
Risk trades remain a bit mixed as there isn't much fresh sentiment in markets to really provide an impetus for traders and investors.
The kiwi and aussie are holding higher still but equities are mixed while bonds and gold are doing their own thing as well.
Looking ahead, the mixed mood may yet continue into the weekend but look out for late positioning action just in case as markets prepare for the Brexit vote tomorrow.
If you're holding positions into the weekend, just be mindful that the vote outcome isn't necessarily going to just impact the pound as it will also potentially have significant implications for risk assets as well come the open next week.
