Entering into US session, Sterling, Yen and Euro are the weakest ones today while commodity currencies are generally firm. Sterling’s weakness is clearly due to Brexit negotiation impasse. And it’s facing more tests from PMIs and BoE’s Super Thursday later in the week. Euro is weighed down by weak economic data. Eurozone GDP growth halved to 0.2% qoq in Q3. Confidence indicators deteriorated more than expected this month. Italy GDP stalled in Q3 too, giving the coalition government more reason to stick with its expansive budget plan for 2019.
On the other hand, Australian Dollar leads other commodity currencies higher. US stocks staged a stunning bearish reversal yesterday on talks that Trump is going to impose more tariffs on China. But Chinese stocks somehow shrugged, ended up 1%. European indices are mixed at the time of writing. The calm markets provided support to commodity currencies and weighed down on Yen.
In Europe, at the time of writing:
- FTSE is up 0.21%
- DAX down -0.27%
- CAC down -0.21%
- German 10 year yield is down -0.0001 at 0.379
- Italian 10 year yield is up 0.088 at 3.426. Spread back above 300.
Earlier today in Asia:
- Nikkei closed up 1.45% at 21457.29
- Singapore Strait Times closed down -0.51% at 2966.45
- Hong Kong HSI closed down -0.91% at 24585.53
- But China Shanghai SSE rose 1.02% to 2568.05
