European key trade news 24 September
- More from UK Commons Speaker Bercow
- UK PM's Johnson to react: What comes next?
- AUDUSD spikes higher on Lowe's 'gentle turning point phrase'
- RBA's Governor Lowe remarks on Australia's economy 'reaching a gentle turning point'
- Commons Speaker Bercow: Commons to convene without delay
- AUDJPY buyers approach first target at 73.20
- UK Supreme Court rules prorogation was 'unlawful'
- GBPUSD ahead of UK Supreme Court announcement at 09:30 GMT
- Germany's Economy Minister Altmaier says German economy not in recession
- More comments from BoJ's Kuroda
- Bank of Japan's Kuroda on the wires
- AUDJPY spikes on soya bean tariff waivers
- China gives new waiver to tariff free US soybean purchases
- GBPUSD contained under 200EMA
- Dax is +0.09%
- UK FTSE -0.16%
- Euro Stoxx +0.18%%
- Italian FTSE: +0.16%
- Gold: $1520 -0.13%
The market sentiment was mixed following on from a indecisive Wall Street yesterday. However, sentiment shifted before the European open as China grants tariff waivers for US soybean imports of between 2-3 million tonnes as several domestic firms were granted new tariff waivers for US Soybean imports. Risk sentiment was on, seeing typical JPY and CHF weakness and AUD/NZD strength, albeit it was a gentle reaction. Given the number of balls in the air - US/Japan deal, eurozone PMI's, Global growth concerns, Middle East tensions etc etc , this was understandable
At the European start we saw sentiment remain gently risk on as the market went into wait and see mode ahead of the UK Supreme Court ruling out of the UK and the data slate in the US Session. This gentle risk on tone remained and AUDJPY buyers found their first target we spoke about at the start of the session.
The Supreme Court ruling decided that PM's Johnson prorogation of Parliament was unlawful and that saw GBPUSD spike to just under 1.2500 before pairing back gains. Next move is that Parliament will reconvene, as it was never considered to be prorogued, subject to any moves by Boris Johnson in a second proroguing attempt. The Brexit saga continues and it is really a sad state of affairs to see the division on the UK. However, divisions are not always a bad thing as they do focus the mind on what is and what is not important.
Just after 12:00 GMT Governor Lowe gave the AUD some support by saying that the Australian economy was at a 'gentle turning point'. This emboldened AUD bulls as the chances of an October rate cut were reigned back. Expect AUD buyers on pullbacks, but remember that global risk sentiment will trump RBA moves in the short term. Risk on: AUD bullish, risk off: AUD bearish.
