Forexlive Nth American News 12 September
- Brexit: What has Cummings got up his sleeve?
- Two US-China talks sources say there's a mutual interest in escalation
- US announces $4mln in new humanitarian help for Bahamas
- EURUSD responds to ECB rate meeting
- Fitch reports on Chinese tariffs impacting US agriculture
- AUDJPY climbs again on risk-on sentiment
- New traders learning point: Risk and the Yen
- Trump reported to be 'rushing' to find an escape from tariff increases
- Brexit: Labour's McDonnell says feasibilty issues over having a second Brexit referundum
- US Oil tests near term support at 54.00
- EURUSD now and what the ECB did earlier
- Leaked resolution: EU to grant another Brexit extension
- Risk-on despite conflicting reports
- Checking in with risk sentiment
- Senior US official White house not considering interim deal with China.
- Trump considering interim China deal to delay tariffs
- Euro roars back after holding support at last week's low
- US stock markets climb at the open
- Chance of a Brexit deal is higher than believed - think tank
- Draghi says concern about side-effects of extraordinary policy 'very well placed'
- Draghi Q&A: The protracted slowdown in the eurozone economy is more marked than expected
- Trump tweets that China is expected to buy agricultural products
- ECB lowers inflation forecasts for 2019 through 2021
- ECB cuts growth forecast for 2019 and 2020
- Draghi opening statement: Incoming information reflects more prominent downside risks
- US August CPI +1.7% vs +1.8% y/y expected
- The ECB executed a dazzling bait-and-switch
- Trump reacts to the ECB decision to cut rates
Markets:
- S&P500 +0.33%
- Euro Stoxx+0.66%
- UK FTSE + 0.6%
- CAC 40 + 0.48%
- Dax + 41%
- Ibex 35 +0.32%
- Gold +0.13%
- Bitcoin 10308 +2.08%
The session got moving with risk on over two conflicting reports. One report from Adam, from Trumps advisers, was that Trump was considering an interim deal with China. This was followed by another report from me, from a senior US official, that Trump wasn't considering an interim deal.Don't worry it wasn't Adam and I playing good cop, bad cop. It was the real news and another reminder of how sensitive to geo-politics the market is right now. Focus in on trade news for tradable sentiment shifts right now.
In the end, the positive risk sentiment played out and the feel of the day was that President Trump is trying to backtrack out of some of the coming tariff increases. The Yen was weak on the day and the AUDJPY, my go to risk on pair for the last couple of day, tried to climb higher again towards the Asian session highs.
The reaction to the ECB rate meeting resulted in EUR strength on the session. It seems like a sell the rumour, buy the fact reaction was the immediate response. Certainly the size of the asset purchases, at EUR20B per month,was less than the expected EUR30B per month and the rate cut was 10bps and not 20bps. EURUSD looks headed for more upside, depending on the daily candle close. See here.
US Oil has a number of bearish factors going for it. See here. Oil fell into near term daily support at 74.00 and sellers took profit for now as could be anticipated. The support from equities would have provided some extra cushioning to Oil's fall. However, the bearish outlook remains with hopes of an immediate production cut at OPEC+ JMMC meeting failed to emerge.
