Forex news from the European morning session - 19 June 2019
Headlines:
- US MBA mortgage applications w.e. 14 June -3.4% vs +26.8% prior
- ECB's de Guindos: If we see that inflation expectations start to deanchor, we will act
- UK June CBI trends total orders -15 vs -11 expected
- ECB's de Guindos: Central bank has a wide range of tools available, including QE
- UK May CPI +0.3% vs +0.3% m/m expected
- Apple reportedly mulls shifting 15-30% of output away from China
- OPEC reportedly reaches agreement for 1-2 July meeting
- China: Trump and Xi will talk about whatever they want
- BOJ's Etoh: Japanese economy is expanding moderately
Markets:
- CHF leads, NZD lags on the day
- European equities mixed; E-minis flat
- US 10-year yields up 2.4 bps to 2.084%
- Gold down 0.3% to $1,343.11
- WTI down 0.1% to $53.85
- Bitcoin flat at $9,120
Markets remain generally quiet as the countdown to the FOMC meeting continues this week. Equities were left with little direction as bonds flip flopped a little without any real conviction. In the currencies space, the franc is posting a modest advance but the dollar is largely steady as we wait on the Fed for more clues.
The pound was the notable mover as cable climbed from 1.2560 to 1.2580 levels after the release of more steady inflation data from the UK. That said, it's nothing to really get excited about with the Tory leadership race set to heat up over the next few days.
Meanwhile, EUR/USD is kept in a tight range of 20 pips with the pair having to navigate through €5.2 billion worth of option expiries between 1.1190 and 1.1210. And that's where price action continues to reside in the European morning.
The yen inched lower during the session as well with USD/JPY climbing from 108.25 to 108.40 levels now as yields move off the floor. However, all eyes remain on the Fed as traders will wait on Powell & co. before committing to any firm moves this week.
Commodity currencies sit tightly in their narrow ranges as traders see no reason to move before we get more clues from the FOMC meeting later. Gold is slightly lower after attempting a break above $1,350 yesterday only to be pegged back by more positive comments on trade.
Looking ahead, it's all about the Fed now so let's wait and see what the meeting later has to offer. Will Trump finally get his wish? Only time will tell.
