ForexLive European FX news wrap: Pound stays choppy; markets cautious

Author: Justin Low | Category: News

Forex news from the European morning session - 28 November 2019

Headlines:

Markets:

  • USD mixed, little change across major currencies
  • European equities lower, DAX -0.3%
  • Gold up 0.1% to $1,456.20
  • WTI down 0.4% to $57.88
  • Bitcoin down 1.0% to $7,471

EOD 28-11
Markets stayed cautious for the most part as US president Trump signed off on the HK bill earlier today, prompting Beijing to respond with fighting words and retaliatory threats.

That kept the risk mood more defensive but lacking in terms of significant risk-off flows as markets still keep some hope that the development won't derail trade talks.

USD/JPY maintained a tight range around 109.40-50 with the dollar seen trading sluggishly as we get to the Thanksgiving holiday in the US. EUR/USD is also little changed as it ranged around 1.1000-15 for large portions of the session.

The pound was arguably the notable mover again as it continued to stay choppy following the YouGov MRP poll release. Cable moved to a high of 1.2951 before paring gains to 1.2925 and is now settling lower around 1.2915.

The poll indicated a significant Tory majority but that goes against what recent opinion polls have been suggesting i.e. narrowing Tory lead; and I reckon that is leaving market participants with a bit of mixed thoughts still ahead of the 12 December election.

Other than that, the aussie continues to stay weaker on the more cautious risk sentiment but nothing too major as AUD/USD held around 0.6760-70 for the most part.

Looking ahead, it is going to be a quiet one with US markets closed and holiday-thin trading will be taking over the trading landscape - likely up until tomorrow as well. As such, be wary of market movements during thin liquidity sessions and be safe out there.

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