Forex news from the European morning session - 27 June 2019

Headlines:

Markets:

  • AUD, NZD leads, JPY, CHF lags on the day
  • European equities mixed; E-minis up 0.2%
  • US 10-year yields down 0.7 bps to 2.04%
  • Gold down 0.3% to $1,405.30
  • WTI down 1.0% to $58.80
  • Bitcoin down 5.4% to $12,050
EOD 27-06

Markets continue to be in a state of flux ahead of the Trump-Xi meeting in Osaka this weekend with the latest report being that China is seeking terms for the US to fulfill before they would be willing to head back to the negotiating table.

That tempered with the slight trade optimism to start the day as USD/JPY fell from 108.00 levels to hover around 107.80 currently. The dollar was also firmer in early trades but gave back gains following the report to hold more steady on the session.

EUR/USD inched up from 1.1350 to trade around 1.1370 levels now while GBP/USD moved up from 1.2680 to a high of 1.2725 before backing down towards 1.2700 currently. Meanwhile, the aussie and kiwi inched up slightly in the European morning but both currencies held tight ranges against the dollar so far today - 16 pips and 23 pips respectively.

In other markets, US futures were more optimistic early on posting gains of about 0.5% before the aforementioned report pushed back trade optimism to see sentiment turn more flat during the session. Treasury yields are also a little weaker as a result and that's leaving markets to continue the wait-and-see approach ahead of the Trump-Xi meeting.

As an aside, Bitcoin was a notable mover as well as it recovered from an earlier setback overnight to trade near $13,000 before falling off again now to threaten a drop back below the $12,000 level.

Looking ahead, it's all about the anticipation ahead of the Trump-Xi meeting and that will keep markets on edge until the end of the week before we see how developments progress and affect markets at the start of next week.