Trading news - European
- SNB's Maechler: Monetary policy to remain expansive
- US MBA mortgage application w.e 27 September 8.1% vs -10.1% prior
- UK Johnson speaking at Tory conference : Coming out of the EU Oct 31
- Boris Johnson's speech about to begin
- Brexit: European Commission spokesperson on the wires
- What happens when Boris announces his Brexit offer at 1200BST
- European equities show risk is still firmly off
- Currencies in focus: JPY strongest against the USD and CHF the weakest
- Brexit: EU sources not liking reports of Boris' Brexit plan
- Brexit: Will BOJO find his MOJO and get a deal?
- UK September construction PMI 43.3 vs 45.0 expected
- WTO: To announce in US vs EU airbus dispute at 1400GMT
- European equities continue their slide: risk is off
- European equities hit one week lows as risk off accelerates
- European indices open down and risk mood is off
- UK PM Johnson to speak at 12:00BST
- Swiss September CPI -0.1% vs 0.1%m/m
- Europe futures lower across the board
- Asian indices close down handing the baton to Europe
- USDJPY pulls away from EMA's on hourly chart
- Gold set to shine again as USD sells off and risk picks up
- UK Civil aviation authority says 44 flights scheduled to operate October 02
- Asian equity markets follow Wall St's risk off lead
Markets
- Dax:-1.39%
- UK FTSE: -2.03%
- Euro Stoxx: -1.45%
- Gold: $1486 +0.49%
- US Oil: 53.86 +0.45%
The session took a negative handover from Asia as the weak US ISM print was digested. The concerns about global growth were reciprocated in the Asian session and this led to a negative handover to Europe. In the European session equities fell heavily, the JPY strengthened and Gold pushed back to $1485
I highlighted the USDJPY pair pulling away from the 100 EMA as sellers were likely to lean against that level, which they did and price moved down into the 107.50 region where some option expiries remain. Intraday sellers would look to take profit there although I am expecting those levels to break and the USDJPY to continue falling later in the US session.
Gold was also highlighted early in the session (you could literally feel the bids in the pair) as it was an obvious beneficiary of the weak USD. It was gently bid on the session, retraced back to the 50% fib level of yesterday's up move and gold is now pushing $1487.
The CHF was weak on the session, despite the risk off tone, due to the poorest inflation readings in three years. The JPY was bid on risk off tones and was the standout currency against the USD on the day. The USD benefited a little from the risk off tones, but the USD weakness will likely kick in on deeper pullback heading into the now crucial NFP on Friday.
The GBP was sold off as it was apparent from overnight that Boris had a plan that was literally dead in the water. The EU have made very negative noises about the plan and Boris announced the plan at the Tory party conference. Ahead there will be the response from the EU which will be the catalyst for any pound moves. At the moment, we are heading for a no-deal Brexit or an extension.
