WILL ENTHUSIASM AROUND CHINA-U.S. CONTINUE TO COOL DOWN?
Enthusiasm around China-U.S. trade talks continued to cool after U.S. Pres Trump told reporters Saturday that earlier reports re: tariff roll-back were "incorrect" and China wants the deal more than he does. Meanwhile,violence in Hong Kong gave another reason to shy away from riskier assets. NOK and AUD underperformed their G10 peers. That being said, the kiwi pulled out of the high-beta FX and landed atop the G10 pile amid pre-RBNZ positioning.
A round of JPYpurchases boosted the currency through the Tokyo fix, before it extended gainson protracted trade war uncertainty. CHF also firmed up somewhat.
Sterling showed some strength from the off, though in the absence of any fresh headlines. There has been talk of participants squaring out short positions entered after Moody's affirmed the UK's credit rating at Aa2, but changed its outlook to negative from stable late doors on Friday.
The U.S.observes a partial mkt closure today (cash Tsys closed, stocks open).
FX Related Economic News:
The week starts with only two important data events scheduled for the day. At 0900 GMT Istat publishes Italian industrial production data and at 0930 GMT the release of the first estimate of UK GDP for Q3 will be closely watched.
FX Relative Volatility:
November 11, 2019