Forex news from the European morning session - 28 June 2019
Headlines:
- Jeremy Hunt: The key is to negotiate a better Brexit deal
- Boris Johnson: I don't want to prorogue parliament over Brexit but won't rule out such a possibility
- Italy June preliminary CPI +0.2% vs +0.1% m/m expected
- Eurozone June preliminary CPI +1.2% vs +1.2% y/y expected
- Russia's Novak says G20 may offer more clarity to OPEC+ before meeting next week
- China says will release information on Trump-Xi meeting in a timely manner
- France June preliminary CPI +0.2% vs 0.0% m/m expected
- Trump says meeting with Xi tomorrow will be productive 'at a minimum'
Markets:
- GBP leads, AUD lags on the day
- European equities slightly higher; E-minis up 0.2%
- US 10-year yields flat at 2.017%
- Gold up 0.3% to $1,414.02
- WTI up 0.2% to $59.52
- Bitcoin up 11.8% to $11,955
Markets remain in a bit of a lull with major currencies showing little poise to break stride as the key focus remains on the Trump-Xi meeting in Osaka tomorrow. Euro area inflation data didn't really move the needle in the single currency so the session was very much a flat one with the dollar a little sluggish amid month-end and quarter-end flows.
EUR/USD inched up to a high of 1.1393 from 1.1375 as the dollar lost some ground early on but is back to trading near 1.1375-80 now as markets remain steady.
Meanwhile, USD/JPY hovered between 107.60-70 levels as the risk mood remains tepid with Treasury yields flat and US futures not really doing much on the session.
Other major currencies sit near flat levels as well but the pound is a little higher with cable near session highs just above 1.2690, though gains aren't overwhelming to say the least.
All of the focus is on US-China trade talks now and it'll all rest upon the Trump-Xi meeting this weekend, so expect the session ahead to keep the focus on that. Besides that, just be aware of late month-end and quarter-end rebalancing flows that could mess up the trading picture a little to wrap up the week.
Looking ahead to the start of next week, just be careful if you're intending to hold any positions over the weekend given such a big risk event. We may end up hearing little to nothing from the meeting to start the week but who's to say that we won't also see some commentary right after as well (you never know with Trump tweets).
