Forex news from the European morning session - 18 September 2019
Headlines:
- ECB's de Cos: Stimulus package will boost inflation, growth
- Barnier: UK must produce 'legally robust' Brexit solutions
- Bonds remain bid on the session as focus stays on the Fed
- UK August CPI +0.4% vs +0.5% m/m expected
- ECB's de Guindos: Monetary policy cannot be the only tool to revive the economy
- Juncker: Risk of a no-deal Brexit remains 'real'
- Iran's Rouhani: Yemenis attacked Saudi oil facilities as a "warning"
Markets:
- USD leads, AUD lags on the day
- European equities higher; E-minis down 0.2%
- US 10-year yields down 3.3 bps to 1.768%
- Gold flat at $1,501.20
- WTI down 0.8% to $58.86
- Bitcoin down 0.8% to $10,171
Markets continue to trudge along as we continue to count down to the FOMC meeting decision later in the day. The dollar held steady for the most part, recouping some of its overnight losses ahead of the main event today.
EUR/USD eased from 1.1060 to a low of 1.1037 while the greenback extended gains against the aussie and kiwi with AUD/USD moving down from 0.6845 to 0.6830.
UK inflation data disappointed and that brought about added pressure to the pound with cable slipping from 1.2465 to 1.2439 before settling close to 1.2450 currently.
Oil maintained its struggles as sentiment continued since yesterday amid reports that Saudi Arabia production capabilities will be somewhat restored by the end of the month. WTI is hovering just under $59 as we approach North American trading.
Other than that, markets remain more tepid and cautious ahead of the Fed so expect that to stay the course until we get to the decision and Powell's press conference later.
