Forex news from the European morning session - 27 May 2019
Headlines:
- China's Guo says China has never taken any measures to deliberately devalue the yuan
- Italy's Salvini: We must totally re-discuss old and outdated EU fiscal rules
- Japan's Nishimura says Abe and Trump did not agree to reach a trade deal by August
- SNB total sight deposits w.e. 24 May CHF 578.6 bn vs CHF 578.3 bn prior
- Japan's Suga says that haven't heard of specific date for US-Japan trade deal
- Trump: We are not ready to make a deal with China
- Trump says continue to hope that North Korea will proceed with denuclearisation
- The winners and losers of the European Parliament elections
Markets:
- USD leads, CHF lags
- European equities mildly higher
- Gold up 0.1% to $1,286.02
- WTI down 0.1% to $58.58
- Bitcoin up 7.4% to $8,710
It was a quiet session for the most part as London traders are observing a holiday to start the week, with little notable headlines and nothing much on the economic calendar to really move things along in the European morning.
The pound was the notable mover as it fell from its Asia Pacific highs to be anchored near the bottom of the major currencies bloc performance today. Cable moved from 1.2720-30 at the start of the session to a low of 1.2674 before recovering slightly now to 1.2691 as buyers and sellers do battle around the 100-hour moving average.
Besides that, the dollar held steady as it advances against the rest of the major bloc but gains are rather minimal with EUR/USD ranging between 1.1190-00 for the most part. The yen and swissie are also notable laggards as risk sentiment is slightly more buoyed.
Fiat announced a proposal for a merger with Renault and that helped to boost auto stocks in Europe but risk tones have been mildly positive since Asian trading already. USD/JPY began the session around 109.45 before touching a high of 109.58 but is settling around 109.50 currently as we wrap up the morning.
Looking ahead, US markets are also closed in observance of Memorial Day so expect the thinner liquidity conditions and slower trading pace to continue. But fret not, things will pick up during the week as we'll have a bunch of stuff on the economic calendar along with month-end flows to keep things interesting over the next few days.
