Forex news from the European morning session - 21 August 2019
Headlines:
- US MBA mortgage applications w.e.16 August -0.9% vs +21.7% prior
- Fed's Kashkari argues for rate cut and use of forward guidance in September meeting
- German president Steinmeier: Not likely that negotiations on backstop will get going again
- Risk mood remains buoyant in European morning trade
- Germany's Röttgen says that German position on Brexit has not changed
- BOJ confirms that deputy governor Wakatabe will be attending Jackson Hole symposium
- Ireland's Coveney: UK position on Brexit is now less compromising
Markets:
- AUD leads, GBP lags on the day
- European equities higher; E-minis up 0.7%
- US 10-year yields up 2.5 bps to 1.58%
- Gold down 0.4% to $1,501.85
- WTI up 1.1% to $56.76
- Bitcoin down 5.2% to $10,145
Markets are generally quiet with subtle moves in risk being the notable thing in the European morning. Treasury yields inched higher while equities were also buoyed with euro area stocks posting solid gains in the session.
As such, the franc and yen are a little weaker with USD/JPY inching up to 106.60 before settling around 106.45 currently. The aussie and loonie were also beneficiaries of the more positive risk mood with USD/CAD inching back below 1.3300 amid firmer oil prices.
Meanwhile, it's the same old story for the pound as the optimism from chatter about backstop concessions overnight begins to fade. Cable failed to breach near-term resistance around 1.2175 and gradually fell towards 1.2117 and is holding just above that now.
There wasn't much else of note as markets stay quiet ahead of the FOMC meeting minutes release later today and as the focus stays on central bank rhetoric ahead of Jackson Hole later in the week.
