Forex news from the European morning session - 23 January 2020

Headlines:

Markets:

  • AUD leads, CAD lags on the day
  • European equities mixed; E-minis flat
  • US 10-year yields down 1.9 bps to 1.75%
  • Gold down 0.3% to $1,554.42
  • WTI down 1.6% to $55.82
  • Bitcoin down 3.2% to $8,362
EOD 23-01

Markets are in a bit of a mixed mood with a slightly more cautious tone prevailing in the European morning. Stocks are mixed but bond yields are lower, keeping the Japanese yen bid on the session with USD/JPY around 109.50-60 in general.

Meanwhile, the aussie is maintaining a more upbeat tone after the stronger jobs report earlier with the currency focusing on rates instead - as RBA rate cuts odds have been marked down significantly, causing CBA and ANZ to revise their calls from February to April.

AUD/USD kept higher around 0.6865-75 throughout the session with the dollar also trading more steadily throughout.

The pound and loonie are also a bit weaker with the former running into some mild offers after the London fix earlier while the latter continues to be weighed down a little after the more dovish take by the BOC in overnight trading.

Looking ahead, we'll get the ECB and Lagarde's press conference later on but risk trades will have to look towards Wall Street for more clues on how to proceed next.

US futures are keeping more flat now, leaving traders with very little direction to work with.