Forex news from the European morning session - 24 April 2019
Headlines:
- US MBA mortgage applications w.e. 19 April -7.3% vs -3.5% prior
- Japan confirms finance minister Aso is to meet with Mnuchin tomorrow
- UK March public sector net borrowing +£0.8 billion vs -£1.1 billion expected
- Ifo economist: Data points to German economic growth being weaker than 0.8% forecast
- ECB says that immediate impact of US car tariffs would be small
- Germany April Ifo business climate index 99.2 vs 99.9 expected
- Switzerland April Credit Suisse investor sentiment -7.7 vs -26.9 prior
- Saudi oil minister: Global inventories continuing to rise, doesn't see need to do anything immediately
- France April business confidence 105 vs 104 expected
- UK expects to make new BOE governor appointment in the autumn
- Japan Post Insurance says it plans to boost foreign debt holdings in fiscal year 2019-20
Markets:
- CHF leads, AUD lags on the day
- European equities mixed, mostly higher; E-minis flat
- US 10-year yields down 2.5 bps to 2.54%
- Gold down 0.1% to $1,271.77
- WTI down 0.5% to $65.98
- Bitcoin down 2.7% to $5,431
It was a session lacking key headlines as markets generally held steady since earlier moves in Asian trading. The aussie remains the major laggard after Q1 CPI data missed on expectations and spurred bets of a RBA rate cut in May. AUD/USD fell to a low of 0.7027 in the aftermath but failed to extend any lower in European morning trade.
Meanwhile, German Ifo data also disappointed and that gave the euro and bund yields a brief nudge lower on the session. EUR/USD dipped from 1.1210 to 1.1195 but quickly recovered to range between 1.1200-15 thereafter.
Most other major currencies failed to really break stride as well with the kiwi staying pressured as it is dragged lower alongside the aussie. The loonie on the other hand continues to remain weak as oil prices are off overnight highs following a build in inventories data. USD/CAD mainly ranged between 1.3440-60 with the Bank of Canada meeting decision eyed later today.
USD/JPY also failed to really produce any notable moves as it continues to stay caught just under the 112.00 handle. Equities are still in search for direction as Treasury yields continue to move lower and that is keeping some light bids in the yen on the week.
Looking ahead, earnings will once again be a key focus in North American trading but all eyes will be on the Bank of Canada and Poloz's press conference to help inject some more volatility to markets today.
