Forex news from the European morning session - 31 December 2018
Headlines:
- China's Xi says that economy stayed within reasonable range in 2018
- US shutdown: Impasse looks set to continue indefinitely
- Unhappy with Theresa May's version of Brexit? Try and find out if you can do better...
- SNB total sight deposits w.e. 28 December CHF 574.2 bn vs CHF 575.5 bn prior
- ECB's Lautenschlaeger sees possible rate hike next year on inflation
Markets:
- GBP leads, NZD lags on the day
- European equities mixed, a little higher mostly; E-minis up 0.8%
- US 10-year yields up 1.4 bps to 2.732%
- Gold up 0.20% to $1,283.63
- WTI up 1.83% to $46.16
- Bitcoin down 3.89% to $3,740
With little on the economic calendar and Japanese and German markets also closed today, trading action was very much limited. The aussie started off on the front foot after positive remarks by Trump on trade over the weekend.
But as the session progressed, the dollar started to lose some ground while the pound is the one posting solid gains as we look to wrap up the year. GBP/USD started the session around 1.2690 before shooting up to 1.2740 levels before consolidating in the region and then pushing higher again now.
There wasn't much to gather from changes in risk sentiment as well with US equity futures trading higher for the most part, posting gains of 0.7% to 0.8% throughout the session. Despite that, USD/JPY made its way lower from 110.10 to touch 109.88 as the greenback lost some ground late in the European morning.
The aussie maintained its gains for the most part with AUD/USD ranging between 0.7050-60 levels on the session. Meanwhile, USD/CAD pushed lower as gains in oil prices are also helping the loonie push higher on the day. The pair started around 1.3620 before slipping to a low of 1.3609 before trading back at 1.3620 levels now.
I would advise not attaching too much thinking into the moves seen today as they can be a little wonky with thin liquidity conditions and stocks experiencing some window dressing. I sincerely hope that 2018 has been a fruitful year for all of you and hopefully 2019 will be an even better year for every one! I want to thank all of our readers for continuing to support us in what we do and also I would like to wish you a Happy New Year and have a blessed and profitable year in 2019!
