Forex news from the European morning session - 6 September 2019
Headlines:
- SNP's Blackford: The government's election motion on Monday is going nowhere
- Brexit: Opposition parties reportedly to vote against government on election proposal
- PBOC announces RRR cut of 0.50% w.e.f. 16 September
- Brexit: Boris Johnson wins English court ruling on parliament prorogation
- Eurozone Q2 final GDP +0.2% vs +0.2% q/q second estimate
- Germany July industrial production -0.6% vs +0.4% m/m expected
- BOJ's Kuroda: Lowering negative rates further is always an option
Markets:
- NZD leads, CHF lags on the day
- European equities mixed; E-minis up 0.3%
- US 10-year yields up 3.6 bps to 1.594%
- Gold down 0.9% to $1,505.05
- WTI down 1.6% to $55.41
- Bitcoin up 3.4% to $10,875
It was a bit of a slower session but there were some decent market moves as we wait on the US jobs report and Fed chair Powell's speech later on in the day.
Markets stayed more upbeat in general with equities holding mild gains while Treasury yields continued to hold firmer during the European morning. 10-year yields are up by more than 3 bps following a solid jump yesterday, sitting just under 1.60% at the moment.
As a result, the aussie and kiwi held firmer and extended gains after China announced a further reduction in the reserve requirement ratio for its banks. AUD/USD continues to hold around 0.6820-30 levels while NZD/USD pushes above 0.6400 from 0.6380 levels.
The announcement also precipitated some added weakness in the franc with USD/CHF pushing higher from 0.9885 to highs just above 0.9900 currently. In turn, that also saw EUR/USD slip from 1.1040 to near 1.1020 levels.
There was also a bit of confusion in the pound with the currency holding weaker initially with cable easing to 1.2290 from 1.2320 before a mis-communicated headline about Boris Johnson losing a court decision to prorogue parliament crossed the wires.
That saw cable jump back up to 1.2320 before the headline was quickly corrected and cable fell back to 1.2290-10 levels in the aftermath.
Looking ahead, risk assets and the dollar will be the main focus ahead of the weekend as markets gear towards the US jobs report and Fed chair Powell's speech in Zurich.
