US futures pare some losses ahead of the open later
E-minis have pared about half their losses as we look towards the start of US trading. The overall risk mood remains more defensive and sour but all it takes is just one right headline and markets can easily switch things around.
US MBA mortgage applications w.e. 15 November -2.2% vs +9.6% prior
- Purchase index 270.4 vs 253.4 prior
- Market index 556.0 vs 568.4 prior
ForexLive European FX news wrap: Havens thrive on US-China trade worries
- JPY leads, CAD lags on the day
- European equities lower; E-minis down 0.4%
Novak: Russia aims to reduce oil output to OPEC+ target in November
Oil is keeping more steady on the day despite the more sour risk mood but the damage was already done yesterday as key levels are taken out:
ECB's Makhlouf says seeing protracted weakness in the Eurozone
- Macroeconomic outlook is 'mixed'
- Endorses call for review of monetary policy strategy
European mid-morning: Dollar, yen keep firm on US-China tensions
Bonds are also staying more bid while equities are seeing red across the board so far in European trading. The risk mood remains more defensive with US-China tensions heightened amid some fighting words by China over the HK bill passed by the US Senate.
ECB's de Guindos: Tiering is partial remedy for impact of negative rates
It's starting to sound a bit like the BOJ but if anything else, it goes to show that the ECB is in a bit of a mess right now as we are still awaiting Lagarde's first speech on policy since taking over as ECB president.
BofAML sees EUR/USD at 1.15 by the end of next year
For EUR/USD, they view the currency pair heading to 1.15 by the end of 2020 - though noting that upside risks remain for the dollar including an escalation in the trade war and a further weakening in
Cable falls below 1.29 as dollar stays firm on softer risk mood
The election debate between Johnson and Corbyn yesterday was practically anything but a "game changer". If anything else, Corbyn may take more heart out of it but I doubt it will lead to any significant movements in the opinion polls.
AUD/USD stays pressured on softer risk mood, what levels to watch out for?
The pair is lingering at session lows of 0.6809 currently and is approaching a test of the 100-hour MA (red line) @ 0.6807. In overnight trading, buyers failed to firmly break above the 200-hour MA (blue line) and that is keeping sellers in the game.