Forex news from the European morning session - 20 November 2019
Headlines:
- ECB's de Guindos: Tiering is partial remedy for impact of negative rates
- US Treasury 10-year yields slip to fresh two-and-a-half week lows
- China foreign ministry: US' Hong Kong bill neglects facts and truths
- Germany October PPI -0.2% vs 0.0% m/m expected
- ECB's Lane: Current inflation rate is "unsatisfactory"
- China summons US embassy official to demand halt to HK meddling
- China foreign ministry says lodged stern representations with US over HK bill
Markets:
- JPY leads, CAD lags on the day
- European equities lower; E-minis down 0.4%
- US 10-year yields down 3.8 bps to 1.745%
- Gold up 0.2% to $1,475.77
- WTI up 0.2% to $55.30
- Bitcoin down 0.3% to $8,086
Markets continued to posture more defensively as US-China tensions stay heightened after China voiced their displeasure over the US Senate passing a human rights bill on HK.
That prompted a retreat in risk assets and the mood continued over into European trading, as market participants fear this may add another hurdle to overcome for trade talks.
Treasury yields fell across the curve to 2½ week lows, underpinning the yen on the session as USD/JPY lingered around 108.35-50 as the dollar also held firm.
Haven flows were the name of the game as equities and futures slumped, dragging risk currencies alongside them as well.
The aussie and loonie are the two notable decliners with the former falling past 1.33 against the dollar while the latter is threatening a break of the 0.68 handle.
As the dollar kept firm, the euro and pound also endured a tougher time with cable slipping below the 1.29 handle briefly while EUR/USD stays pressured around 1.1055-60.
Looking ahead, it's all about the risk mood still so let's see if the US camp has anything to say on trade talks to try and revive hopes and optimism on the day.
