Forex news from the European morning session - 30 October 2019
Headlines:
- US MBA mortgage applications w.e. 25 October +0.6% vs -11.9% prior
- There's no easy way for the Fed to thread the needle today
- Saxony October CPI +0.1% vs -0.1% m/m prior
- Spain October preliminary CPI +1.0% vs +0.8% m/m expected
- China says lead US, China trade negotiators will speak again soon
- France Q3 preliminary GDP +0.3% vs +0.2% q/q expected
Markets:
- GBP leads, NZD lags on the day
- European equities mixed; E-minis flat
- US 10-year yields down 1.6 bps to 1.823%
- Gold up 0.4% to $1,493.14
- WTI down 0.3% to $55.40
- Bitcoin down 3.9% to $9,082
Despite the barrage of data releases in Europe, markets held steady throughout as traders and investors continue to wait on key US data as well as the Fed later today.
The pound managed to catch some early bids as cable pushed to a high of 1.2906 from 1.2865 but offers around the figure level continue to keep gains in-check for now.
There wasn't much else happening during the session as the dollar remains steady for the most part with EUR/USD cycling through a narrow 21 pips range today.
USD/JPY even more so with a range of just 9 pips as large expiries seen at 109.00 also playing a role in limiting price action on the day.
Risk trades are also not doing much in general although there is some slight softness in bond yields but it isn't really translating to any significant risk positioning ahead of the Fed.
Looking ahead, we'll have US Q3 advanced GDP data to come before we get to the FOMC meeting decision. In between, the BOC will also be announcing their latest monetary policy decision although it is expected to be more of a non-event this month.
