Forex news from the European morning session - 7 June 2019
Headlines:
- BOE/TNS May inflation expectations 3.1% vs 3.2% prior
- Saudi's Al-Falih: I'm sure that OPEC+ will extend output cuts deal
- ECB's Nowotny: We see no risk of a recession, only a slowdown
- Iraq oil minister says OPEC+ is most likely to extend output cuts deal until year-end
- Saudi oil minister says "we are aligned with Russia" on oil market views
- France April trade balance -€4.98 billion vs -€4.74 billion expected
- Bundesbank cuts German 2019 GDP forecast to 0.6% from 1.6% previously
- ECB's Vasiliauskas: Inflation outlook is 'not bad'
- Germany April trade balance €17.9 billion vs €19.5 billion expected
- Germany April industrial production -1.9% vs -0.5% m/m expected
- Switzerland May unemployment rate 2.3% vs 2.3% expected
- Fed's Daly: Economy is settling at a natural pace of growth
Markets:
- GBP leads, JPY lags on the day
- European equities higher; E-minis up 0.4%
- US 10-year yields up 0.3 bps to 2.121%
- Gold flat at $1,334.92
- WTI up 1.4% to $53.34
- Bitcoin up 3.7% to $7,978
Markets held mostly steady in anticipation of the two key risk events later today i.e. US non-farm payrolls data and US-Mexico trade talks. Equities are slightly higher on cautious optimism but Treasuries are pretty much flat on the day.
In the currencies space, the dollar is holding steady as there is little notable movement in general among the major bloc. The pound is slightly higher but nothing overwhelming, with mixed sentiment across other major currencies.
The euro did dip lower briefly with EUR/USD slipping from 1.1270 to 1.1251 during early morning trade but is trading back at 1.1260 levels now amid weaker trade data from Germany and France for the month of April.
Oil is a standout performer today as OPEC members talked up chances of an extension to the current output cuts deal, with Saudi Arabia implying with their comments that they can get Russia on board as well. Brent rose by above 2% at one stage to $63 and is settling just below that ahead of US trading.
Looking ahead, it's all about the two key risk events highlighted above as that will determine the course of market direction as we look to wrap up the trading week.
