Forex news from the European morning session - 9 December 2019
Headlines:
- Eurozone December Sentix investor confidence +0.7 vs -5.3 expected
- Remember, remember the 15th of December..
- North Korea warns that Kim's thoughts on Trump can change
- Cable trades to fresh seven-month highs to start the week
- Germany October trade balance €21.5 billion vs €19.3 billion expected
Markets:
- GBP leads, AUD lags on the day
- European equities a little lower; E-minis down 0.1%
- US 10-year yields down 1.2 bps to 1.824%
- Gold up 0.3% to $1,464.08
- WTI down 1.0% to $58.62
- Bitcoin up 0.5% to $7,503
Markets stayed more cautious to start the day as we await quite a number of key risk events still to come later in the week.
The pound inched higher early on as voting intentions continue to favour a Conservatives victory going into the election on Thursday. Cable hit fresh a seven-month high of 1.3181 before backing off a little to stay around 1.3160-70 levels.
The dollar stayed more tepid as the greenback fails to extend gains from the hot US jobs report seen on Friday. Bond yields also retraced lower a little and that is weighing USD/JPY to just under 108.50 as we look towards North American trading.
The aussie and kiwi are slightly on the back foot but nothing major as trading ranges remain relatively narrow for the most part still.
Looking ahead, there is little on the calendar today to shift the dial in markets so if anything else, look out for trade headlines as we count down to the 15 December tariffs deadline that may yet define US-China trade relations in the coming months.
