Forexlive European FX News: Positive risk tone dominates for start of the week
Forex news for European morning of November 4, 2019
- Mikhail Gorbachev gives interview on the state of Russian and Western relations
- US Oil extends gains on the day
- Interest rate expectations for major and emerging central banks
- Currencies in focus: NZD strongest and CHF the weakest
- Risk on tone continues into European morning trading
- UK October construction PMI 44.2 vs 44.1 expected
- European PMI's largely ignored as risk on tones dictate European trade
- SNB total sight deposits w.e.1 November CHF 591.9 bn vs CHF 592.4 bn prior
- Eurozone October manufacturing PMI 45.9 vs 45.7 expected
- German October manufacturing PMI 42.1 vs 41.9 expected
- France October manufacturing PMI 50.7 vs 50.5 expected
- Italy Oct manufacturing PMI 47.7 vs 47.6 expected
- What's driving the GBP now?
- EURUSD falls from 1.1175 to 1.1150 on weak manufacturing PMI data
- Spain Oct manufacturing PMI 46.8 vs 47.5 expected
- UK General Election: Farage predicts labour losses
- AUDJPY chart in focus
- Quick look at Asian equities: Risk on
- NZD the strongest and CHF the weakest against the USD
- Christine Lagarde's first speech in Berlin at 20:30
- Chinese premier Li ready to speed up trade talks with Japan
- Dax: +1.20%
- UK FTSE: +1.05%
- Euro Stoxx: +1.05%
- France 40 (CAC): +1.10%
- Italian FTSE:+1.35%
- US Oil: +1.07%
The European equity markets followed Asia's early lead on a continued ride on the back of a slew of positive comments from multiple sources on good progress with the US-China trade talks to start the week. On top of this there was talk that EU car tariffs may be suspended too which helped risk sentiment along very well.
NZD was the strongest on usual risk on flows into NZD, but also on the news that NZ and China will enhance their free trade agreement (FTA).
JPY and CHF were the weakest, again as you would expect, on the risk sentiment.
European manufacturing PMI's
There was a batch of European PMI's this am which the market largely shrugged off preferring to focus on the improving risk sentiment. The new ECB President Christine Lagarde is due to speak later in Berlin this evening at 2030 GMT I think. This will be a key focus for the Euro as the market seeks a cue as to her likely first moves.
Aside from the above it has been an exceptionally quiet start to the week. with little other news/data.