Forex news from the European morning session - 23 August 2019
Headlines:
- Global Times editor: China will take further countermeasures against US tariffs
- European Commission reiterates that position on Brexit among members remains united
- What are markets pricing in for the Fed ahead of the Jackson Hole symposium?
- Central bankers at Jackson Hole this year
Markets:
- NZD leads, CHF lags on the day
- European equities higher; E-minis up 0.4%
- US 10-year yields up 2.4 bps to 1.637%
- Gold down 0.2% to $1,495.35
- WTI flat at $55.33
- Bitcoin down 0.7% to $10,114
Markets were largely quiet as all the spotlight turns to the Fed ahead of the Jackson Hole symposium later today. Fed chair Powell's speech remains the key risk event today and markets showed little poise to move around during the European morning.
The dollar stayed firmer throughout the session, inching towards fresh three-week highs against the euro with EUR/USD falling from 1.1070 to a low of 1.1052.
USD/JPY stayed firm amid higher Treasury yields, touching a high of 106.67 and is still sitting near that level currently.
Meanwhile, the pound was a notable mover as cable fell from 1.2240 to just under 1.2200 before finding some support to bounce back to around 1.2210-20 levels now.
The kiwi is the other currency which is holding more firm on the day and that owes to less dovish remarks by RBNZ governor Orr earlier in Asia Pacific trading.
All eyes are on the Fed now and let's see if Powell will deliver any surprises or disappoint markets ahead of the weekend.
