Forex Today: Risk tone improves on trade progress, focus shifts to ECB


Here is what you need to know on Wednesday, September 11:

- Market mood improves on fresh US-China trade optimism after Global Times editor reported China will introduce important measures to ease the negative impact of the trade war. Meanwhile, China released tariffs exemption list for products from the US.

- The US yields extend gains alongside Asian equities and Wall Street futures while and dollar eases against the euro and risk/ commodity currencies. The Yen remains the main laggard at six-week lows near 107.85 vs. the buck on trade progress and dovish BOJ expectations.  

- EUR/USD clings to minor gains around 1.1050 amid the recent rally in German bund yields, awaiting Thursday’s ECB monetary policy outcome. The German stimulus talks pushed 30-year bund yields into positive territory.

- GBP/USD trades above 1.2350 ahead of an empty UK docket and bi-weekly EU-UK Brexit negotiations. UK Parliament passed a law to block a no-deal Brexit. UK MPs launched a new group to try to secure Brexit deal. PM Johnson said that he is opposed to the idea of a so-called Northern Ireland-only backstop to get a Brexit deal done.

- Oil prices jump on large US crude inventory draw, reversing the drop fueled by speculation of sanctions-hit Iranian crude returning to the market after US President Trump’s fired Iran-policy hawk, Bolton. Meanwhile, Gold holds the lower ground sub-$ 1500.

- Cryptocurrencies return to the red, with Bitcoin battling 10k level.

Key events ahead

 

GMT
Event
Vol.
Actual
Consensus
Previous
Wednesday, Sep 11
11:00
 
 
-3.1%
12:30
 
0.2%
-0.1%
12:30
 
2.2%
2.1%
12:30
 
1.7%
1.7%
12:30
 
0.0%
0.2%
12:30
 
81.8%
80.9%
14:00
 
0.2%
0.2%
14:30
 
-2.600M
-4.771M
17:00
 
 
1.67%
22:45
 
 
1.1%
23:01
 
-11%
-9%
Thursday, Sep 12
06:00
 
-0.2%
-0.2%
06:00
 
1.4%
1.4%
06:00
 
1%
1%
06:00
 
-0.1%
-0.1%
06:30
 
 
-1.7%
06:30
 
 
-0.1%
09:00
 
-1.3%
-2.6%
09:00
 
-0.1%
-1.6%
11:45
 
-0.5%
-0.4%
11:45
 
0%
0%
12:30
 
215K
217K
12:30
 
 
216.25K
12:30
 
1.690M
1.662M
12:30
 
0.1%
0.3%

 

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