Forex news from the European morning session – 11 February 2019
- USD leads, JPY lags on the day
- European equities higher; E-minis up 0.3%
- US 10-year yields up 1.3 bps to 2.645%
- Gold down 0.6% to $1,307.08
- WTI down 0.9% to $52.24
- Bitcoin down 0.1% to $3,591
It was a rather straightforward session as the dollar kicked start the new week from where it left off the previous one, gaining against the rest of the major currencies bloc. The aussie and kiwi were the lead gainers to start the session but as we move towards North American trading, king dollar is back in charge.
The greenback’s advance came mid-way through the European morning and came alongside a jolt higher in equities as European stocks and US equity futures posted decent gains. That saw USD/JPY take a crack above the 110.00 handle to a high of 110.28 where it trades close to now.
Meanwhile, EUR/USD made a slow and steady track lower dipping below the 1.1300 handle briefly to two-week lows and trades close to the figure level currently. The greenback’s solid performance on the session saw it pare losses against the aussie and kiwi with AUD/USD moving lower from 0.7090 levels to trade close to 0.7070 while NZD/USD fell from 0.6770 to just under 0.6740 at the moment.
The other main mover of the session was the pound as it fell slightly at the start of the session with cable dropping from 1.2940 to 1.2915 before recovering to 1.2930 before the release of key economic data in the UK.
December and Q4 GDP figures (one in the same basically) disappointed and that saw cable falling to a low of 1.2895 before posting a recovery to 1.2930 two hours later, owing to some dollar gains being eaten at as well. But the greenback is firming up again and we’re seeing cable fall to 1.2900 now as we await US traders to join us in the new week.
Looking ahead, trade talks is the dominant theme in markets despite there being a lack of headlines surrounding what is taking place in Beijing this week. I’m not entirely sold on the risk-on move in equities just yet and I’d advice caution on potentially choppy trading as we await fresh developments on negotiations between US and China.