Forex news from the European morning session - 21 November 2019
Headlines:
- OPEC+ reportedly said to have no plans to deepen output cuts in December meeting
- China reportedly invites US trade negotiators for more talks
- OECD trims 2020 global growth forecast to 2.9% from 3.0% in September
- German exports to the US reportedly jumped in Q3 despite trade tensions
- China foreign ministry reaffirms opposition against US passage of HK bill
- China commerce ministry says rumours about possible disagreements in trade talks are not accurate
Markets:
- NZD leads, CAD lags on the day
- European equities lower (off earlier lows); E-minis down 0.1%
- US 10-year yields up 0.7 bps to 1.752%
- Gold down 0.2% to $1,468.90
- WTI down 0.4% to $56.81
- Bitcoin down 2.5% to $7,888
It is yet another session dominated by the push and pull in the US-China trade rhetoric, with China playing down possible disagreements before a WSJ report indicating that both sides may be looking towards another round of face-to-face talks.
That helped to keep risk trades from sinking after the overnight pessimism with hopes of a deal still fueling traders and investors' appetite for now.
USD/JPY inched higher from 108.50 to 108.67 as yields crept higher though a large field of option expiries between 108.30-75 may yet keep price action a bit sticky today.
The aussie and kiwi recovered from earlier losses with AUD/USD climbing from 0.6795 to 0.6810 while NZD/USD moved up from 0.6410 to 0.6435.
The dollar held a little weaker throughout the session with the euro and pound posting mild gains against the greenback, though nothing too notable.
The more relevant moves are seen in bonds and equities with yields sitting higher for now while US futures stay more flat after earlier losses. European stocks also recovered well after a rough start to the day in the early morning.
Looking ahead, it's still all about the trade rhetoric so be wary of more potential headlines to follow in the session ahead.
