Forex news from the European morning session - 20 January 2020
- UK PM spokesman: There will be equivalence once we leave the EU
- Reminder: US markets are closed today
- SNB total sight deposits w.e. 17 January CHF 585.9 bn vs CHF 584.5 bn prior
- Pound stays weaker to start the European morning
- Australia's Frydenberg: Full economic impact of bushfires remains uncertain
- USD leads, AUD lags on the day
- European equities mixed
- Gold up 0.2% to $1,559.55
- WTI up 0.6% to $58.90
- Bitcoin down 3.3% to $8,612
It was a quiet session overall with little movement in markets as we brace for a US holiday today in observance of Martin Luther King Day.
There wasn't a whole lot in terms of economic data, so major currencies were trapped throughout the European morning with the pound being the only notable mover.
With heightened odds of a BOE rate cut ahead of the 30 January policy decision, the pound eased a little with cable slipping from 1.2990 to 1.2962 before recovering a little to sit just under the 1.3000 handle currently.
The aussie and kiwi are also mildly weaker near the lows for the day now but are both sitting in narrow ranges still. AUD/USD though is pulling away from its 200-day moving average and that may be a concern for buyers from a technical perspective.
Meanwhile, European equities are trading a bit mixed with investors not going to get any help from Wall Street in terms of direction today. That is leaving the risk mood a bit more tepid and USD/JPY is trading in a sleepy range around 110.10-20 this session.
EUR/USD is keeping in a narrow range but price is sitting near three-week lows, testing support around 1.1085 but showing very little conviction for a firm break.
Looking ahead, the US holiday should keep markets more lackadaisical amid thin liquidity conditions so we may have to wait until tomorrow for a proper theme to show up and capture the imagination of market participants.