Forexlive European FX News 5 Nov: US China trade optimism boosts risk assets
European morning news
- China's Communist Party on Hong Kong
- Kremlin unclear when Putin and Trump will meet after APEC Chile summit was cancelled
- Fitch expects most GCC fiscal balances to worsen by 1-2PP of GDP
- Eurozone October PPI +0.1% vs +0.1% m/m expected
- AUDJPY hits highest level since July with risk on tones
- Yuan in a happy place as it breaks past 7.00 handle on USDCNY
- German's 10Yr bund yield rises to highest since July @-0.319%
- OPEC forecasts global oil demand to rise to 103.9mln by 2023
- GBPUSD sat under large option at 1.2900
- European cash open: Up on US-China trade deal optimism
- Trade ideas thread - European session 05 November 2019
- China's onshore Yuan strengthens past 7.0074 for first time since August 05
- Chinese Global Times Editor: Some media reports are illogical
- European Index futures up as expected on US-China trade optimism
- Major drivers at the start of the European session
- Qatar Emir says last year's large budget deficit turned into surplus this year
- Asian Indices up on continued US-China trade optimism
- UK poll of polls give Conservative Gov't 38% lead
- AUD the strongest and JPY the weakest before Europe's start
- DAX: -0.02%
- CAC 40: +0.15%
- FTSE 100: +0.27&
- US oil: +0.76%
- Gold: -0.35%
- US 10YR: +0.90%
- AUD strongest and CHF weakest
The session started with a positive boost to risk assets on optimism regarding the US-China trade deal. This sentiment lasted throughout the session and we saw German bund yields breaking out of 3 months highs, US Oil retest the $57 handle, and the Yuan retake the 7.00 handle as USDCNY fell through the level.
The AUD got a double boost with the US-China trade optimism and the RBA hinting that they may have done with easing for now (if you read between the lines, that is).
GBPUSD pulled away from the large 1.2900 (1.5bln) option expiry level and then returned to it on the slightly better UK PMI data out.
The AUDUSD broke through its large option expiry level at 0.6900 and price is contained underneath 0.6925 overhead resistance for now.
AUDJPY made a move to take out overhead highs, but pulled back slightly to 75.25.
The focus now turns to US ISM service data out this afternoon for the next dollar cue.