Forex news from the European morning session - 11 November 2019
Headlines:
- HK leader Carrie Lam: Escalating violence will not make government yield to pressure
- UK Q3 preliminary GDP +0.3% vs +0.4% q/q expected
- China October M2 money supply +8.4% vs +8.4% y/y expected
- China foreign ministry says no updates on trade talks and tariffs
Markets:
- NZD leads, AUD lags on the day
- European equities lower; E-minis down 0.4%
- Gold up 0.4% to $1,465.26
- WTI down 1.5% to $56.37
- Bitcoin down 2.1% to $8,679
In terms of headlines, there wasn't much on the session but markets were active as risk trades stayed on the defensive while the dollar eased a little in the European morning.
The kiwi continued to stay firm on reported exporter bids and extended gains amid slight weakness in the dollar as NZD/USD climbed above its 100-hour moving average from 0.6345 to 0.6360-70 levels.
Meanwhile, the yen held just under the 109.00 handle as markets continue to display concern over US-China trade talks and also as tensions in Hong Kong escalated further. The Hang Seng index fell by 2.6% on the day as chaos continues to reign in the city.
The dollar stayed a little bit on the back foot with cable extending gains above 1.2800 as the UK avoided a technical recession, with some speculation over the weekend of a possible pact between Johnson and Farage also helping with sentiment.
Looking ahead, expect lighter and thinner trading conditions with a long weekend observed in the US and Canada but just be wary of potential trade headlines that could yet affect the risk mood later today.
