Forex news for European trading Friday 27 September
- PM Johnson: Not exploiting division in the UK
- WSJ: Oil tumbles as Saudi Arabi agrees to a partial ceasefire in Yemen
- UK PM Johnson spokesperson: Not going to be 2nd referendum
- Learning point: When a hawk turns into a dove
- Kremlin: After Ukraine call scandal hopes Putin-Trump calls aren't released
- European industrial confidence now at multiyear low
- Eurozone September final consumer confidence -6.5 vs -6.8 expected
- GBP weakest against the dollar and AUD the strongest
- European equities higher approaching mid session
- Bank of America Merrill Lynch: Bond funds add $9.2bln
- BoE Saunders: Not a fan of negative interest rates
- GBP heads up for traders: What you need to know 101
- Trade hopetimism: Being realistic about US-China trade talks
- GBPUSD sellers target 1.2250 on Saunders dovish comments
- France September PPI +0.0% vs +0.4% m/m prior
- Euro futures up on cusp of European open
- Germany August import price index -0.6% vs -0.3% /m expected
- What's the current probability of a rate cut for RBNZ?
- NZD: Consumer confidence data at odds with Orr's comments
- What's coming up on the data slate for Europe?
- Asian indices: Nikkei -1.29% and giving JPY strength
- Post-links Paragraph Text Here, don't forget an image.
Markets
- Dax: +0.89%
- UK FTSE: +1.15% (enjoying the weak GBP today)
- Euro Stoxx: +0.43%
- France 40 (CAC): +0.29%
- Ps120: +0.60%
- Gold: -0.65%
- Bitcoin: $7975.25
The session started in a risk off mood from overnight which I had not been expecting seeing the positive comments from China's foreign ministry coming in just before I went to bed last night. However, the market turned the way I was expecting during the session as the Asian equities recovered into the close from a deeper earlier fall and European indices pushed into positive territory.
As a result we had AUD stenth doing the session on the risk on tones. The main event was the Bank of England's Saunders speaking in the metropolitan venue of Barnsley. His venue may not have been necessarily attention grabbing, but his words were. He turned dovish on his remarks seeing a BoE rate cut as 'quite plausible' and was against the idea of the BoE waiting on the sidelines. We saw the GBP tumble and I am expecting sellers on retracements, bar any good Brexit news.
Ah, Good Brexit news. It seems an oxymoron, but nevertheless the market is hoping for some good news. Johnson was on the wires saying that he wouldn't do anything 'illegal' to prevent the Benn Act. However, my hunch is he will do something. Remember this is politic speak, so he didn't say he wouldn't try nothing Sadly, UK politics is descending to the depths, but until Brexit is delivered this will be the case of affairs
On more cheery news Saudi declared a partial ceasefire in Yemen (good for peace) and this saw US oil falls heavily on the news (good for oil bears too). More downside for oil looks likely and any risk off sentiment will help the fall. The US impeachment issue was understandably quiet while America sleeps, but I have a hunch these impeachment issues are going to grow. It just seems to hang around.
