Forex news from the European morning session - 29 July 2019



  • JPY leads, GBP lags on the day
  • European equities a little higher; E-minis flat
  • US 10-year yields down 1.4 bps to 2.056%
  • Gold up 0.1% to $1,420.46
  • WTI up 0.1% to $56.26
  • Bitcoin down 3.9% to $9,456
EOD 29-07

The pound is the major talking point as we begin the new week as the currency falls to fresh 28-month lows amid increasing chatter of a no-deal Brexit by Boris Johnson's 'dream team' since the weekend.

Gove got things started by saying that the government is now operating under the assumption of a no-deal outcome and Raab kicked things into overdrive by pointing the finger to European leaders, thus turbo-charging the pound's decline.

Cable fell from 1.2370 levels at the start of the session to 1.2350 before Raab's remarks sent the pair towards 1.2330 and it been a steady track lower towards 1.2300 since.

Other major currencies remain more subdued with markets looking a little cagey overall in anticipation of key central bank decisions to follow in the coming days.

The Fed of course is the major highlight and the dollar held steady with traders looking disinterested to be chasing moves before the Wednesday decision.

EUR/USD held in a steady range around 1.1115-30 for the most part with USD/JPY lingering around 108.60-70 as Treasury yields were very much subdued as well.

Commodity currencies are little changed against the greenback during the session and the swissie erased earlier gains despite SNB sight deposits hinting at potential intervention by the central bank last week.

Looking ahead, expect markets to remain tepid with little on the economic calendar but for the pound, this could be the start of something ugly if the no-deal rhetoric keeps up.