Forex Today: China factory deflation offsets trade optimism, UK jobs in focus
Here is what you need to know on Tuesday, September 10:
- Market mood stays cautiously optimistic amid deepening Chinese factory deflation that offset positive US-China trade development. Asian equities turned south on poor China PPI.
- US yields crept higher and supported the dollar against the euro, yen and gold while the Kiwi outperformed the commodity currencies. Yields firmed up after the US President Trump said the US-China trade talks will restart next week and that China wants a deal.
- EUR/USD’s upside remains capped on 1.10 handle amid a broadly bid US dollar and ahead of the ECB monetary policy meeting this Thursday.
- GBP/USD trades on the defensive below 1.2350 ahead of the UK labor market report and a likely calm on the Brexit front. UK PM Johnson prorogued the Parliament until October 14th after having failed again to garner support for an early election. Johnson said that he would not request a Brexit extension.
- Oil prices sit at six-week highs on hopes of extended OPEC output cuts ahead of the key OPEC meeting on September 12th. Gold consolidates losses below $ 1500.
- Cryptocurrencies keep the recovery mode intact, with Bitcoin holding well above the 10k level.
Key events ahead