Forex news from the European morning session - 5 July 2019
Headlines:
- Juncker says that von der Leyen appointment was not very transparent
- UK June Halifax house prices -0.3% vs -0.4% m/m expected
- France May trade balance -€3.28 billion vs -€4.85 billion expected
- This chart highlights the dismal performance in Germany's manufacturing sector
- Germany May factory orders -2.2% vs -0.2% m/m expected
- BOJ's Amamiya: Must bear in mind it will take a long time to hit inflation target
- BOJ's Amamiya: Main scenario is that economy will continue to expand moderately
Markets:
- USD leads, NZD lags on the day
- European equities lower; E-minis down 0.2%
- US 10-year yields up 1.7 bps to 1.967%
- Gold down 0.2% to $1,413.85
- WTI down 0.8% to $56.90
- Bitcoin down 3.9% to $11,261
It was a quiet session for the most part with markets waiting with abated breath on the US jobs report to come at 1230 GMT. The dollar is holding firmer though as it gained some ground during the European morning on (re)positioning flows ahead of the event.
It was a broad-based move with EUR/USD inching to fresh two-week lows from 1.1280 to 1.1260, not helped by weak German factory orders data. Meanwhile, GBP/USD also posted fresh two-week lows falling from 1.2580 to 1.2540-50 levels.
USD/JPY pushed higher amid a slight tick higher in Treasury yields, moving from 107.85 to near session highs around 108.10 currently.
Commodity currencies remain a little weaker against the greenback with the New Zealand dollar in particular coming under pressure on the session. NZD/USD fell from 0.6680 levels to trade at lows now around 0.6660.
Other than that, markets remain quiet with equities inching a tad lower as traders and investors are all waiting on the US jobs report before committing to any firm moves to wrap up the week. In case you missed out on our earlier previews, you can check them out here.
