Forex news from the European morning session - 20 December 2019
Headlines:
- BOE's Haskel: It is fine to cut rates as BOE can raise them back by more later
- BOE's Haskel: Current data justifies looser monetary policy
- UK PM Johnson: Brexit bill contains no possibility of extension
- UK Q3 final GDP +0.4% vs +0.3% q/q prelim
- BOE's Carney: Bailey brings unparalleled experience to the central bank
- UK confirms Andrew Bailey as next BOE governor
- Chinese foreign ministry: US, China should work in accordance with consensus reached by leaders
- Japan downgrades overall economic assessment for the month of December
- Germany January GfK consumer confidence 9.6 vs 9.8 expected
Markets:
- AUD leads, EUR and CHF lag
- European equities higher; E-minis flat
- US 10-year yields up 1.6 bps to 1.936%
- Gold down 0.1% to $1,477.90
- WTI down 0.4% to $60.93
- Bitcoin down 0.2% to $7,142
There was little action in general as markets are starting to settle into the festive mood already ahead of the Christmas holiday period next week.
The dollar is mixed across the board in choppy trading all around with the pound inching higher during the session before paring gains just as easily. Cable moved from 1.3020 to 1.3040-50 before retreating back to 1.3020-25 levels currently.
Meanwhile, the euro did a whole lot of nothing before easing to one-week lows against the dollar but so far the downside move is rather contained just under the 1.1100 handle.
The aussie is keeping a little higher close to 0.6900 against the dollar but the 200-day moving average is still capping gains for now - much like it has been throughout the year.
European stocks are staying more upbeat to end the week with bond yields also keeping a little higher on the day. US future are tepid but look set for another all-time high push later in North American trading.
Other than that, there is generally little direction in markets as traders and investors brace themselves for the holiday season. For those still out to try and make a buck, just be wary of year-end trading conditions as liquidity will be rather thin during this time.
To those who will be away, I wish you all a Merry Christmas and a Happy New Year! Enjoy the festive period and happy holidays!
