Forex news from the European session - 25 November 2019
Headlines:
- PBOC: Downward pressure on economy is increasing
- China foreign ministry: US economic bullying flouts principle of market economy
- Ifo says German manufacturing is still stuck in recession
- Germany November Ifo business climate index 95.0 vs 95.0 expected
- Global Times: China and US are very close to "Phase One" trade deal
Markets:
- GBP leads, JPY lags on the day
- European equities higher; E-minis up 0.2%
- US 10-year yields up 1.5 bps to 1.786%
- Gold down 0.3% to $1,457.56
- WTI down 0.1% to $57.70
- Bitcoin down 5.3% to $6,950
Risk trades continued to maintain a steady footing for the most part from trade optimism to start the new week. But it is the pound leading the charge in the currencies space.
Cable inched higher from 1.2850 to a high of 1.2885 owing to early bids in the pound and the quid remains underpinned with cable near 1.2870 currently.
The US-China trade rhetoric took a slightly better turn since the weekend after news of China stepping up measures on IP protection. That helped to keep yen pairs bid with USD/JPY sitting at 108.80-90 during the session.
Meanwhile, European stocks are also posting modest gains with US futures seen up by 0.2%. Bond yields are also sitting a little higher and that is keeping the risk mood more buoyant as we look towards the start of US trading.
The aussie and kiwi have seen their bit-part gains dissipate though with AUD/USD easing from 0.6800 to 0.6787 while NZD/USD drops back from 0.6420 to 0.6409 currently. That said, the dollar is keeping firm following Friday gains with EUR/USD easing to 1.1010.
Looking ahead, the trade rhetoric still remains the key spot to watch for this week so be wary of more potential headlines that could shift sentiment one way or another.
