Forex Today: Safe-havens cheer Hong Kong unrest, trade jitters; focus on UK data


Cautious trading sentiment highlighted the Asian session at the start of a fresh week this Monday, as the Hong Kong violence added the looming US-China trade deal anxiety and triggered a flight to safety across the board. Therefore, the safe-havens such as the Yen, gold and Swiss franc traded on the front foot while the risk assets in oil, Aussie and Asian equities suffered. The Asian stocks were mainly dragged lower by a 2% drop in Hong Kong’s Hang Seng index. Despite the risk-off action, the US Treasury yields managed to recover some ground after last week’s slump.

Across the G10 currencies, the Kiwi emerged as the strongest, ditching the price action in its OZ counterpart, the Aussie. The NZD/USD pair tested 0.6350, up 0.30% while the Aussie kept range near weekly lows of 0.6847. Meanwhile, USD/JPY retraced from five-month tops and retests 109.00 amid risk-aversion.

Heading into the European morning, both the European currencies, the EUR/USD pair remains close to three-week lows of 1.1017 while the Cable consolidates the early gains below 1.2800, hurt by Moody’s outlook downgrade.  

Main Topics in Asia

Trump said not to roll back tariffs, risk-off to start the week?

NZ retail card spending: A weaker result than expected - Westpac

UK Election Polls: Conservatives remains in lead over Labour – GBP positive

Moody’s: UK outlook cut to negative on policy 'paralysis – Cable slips below 1.2800

Iran’s Rouhani: Has discovered an oil field with an estimated 53 billion barrels of crude – CNN

BOJ Oct meeting Summary of Opinions: Appropriate for BOJ to clarify the downward bias in policy rates

Spain’s Election update: Far right doubles seats in hung parliament, tough times ahead

Hong Kong protesters shot by police amid ongoing demonstrations – Reuters

UK employers' hiring plans lift off 18-month low - Survey

Asian stocks dragged lower by 2% drop in Hang Seng

Key Focus Ahead

Monday’s EUR calendar offers a flurry of economic releases from the UK docket, all dropping in at once at 0930 GMT, including the monthly and quarterly GDP figures, Industrial Production, Trade Balance and Business Investment. Meanwhile, there is nothing of relevance from the Eurozone.

With the US and Canadian markets closed today, the focus will remain on the US-China trade related developments amid a speech by the Fed official Rosengren, scheduled at 1315 GMT.

EUR/USD: Bears take a breather above 1.1000 ahead of a Big week

Sellers catch their breather after the five-day losing streak, allowing a brief phase of consolidation in EUR/USD above the 1.1000, having tested the three-week lows of 1.1017 reached last Friday. All eyes remain on trade, US inflation and Eurozone GDP numbers.

GBP/USD stops further declines ahead of UK GDP

GBP/USD seesaws near three-week low after Moody’s cut UK outlook to negative. The broad USD strength and market’s cautious mood ahead of the key British data limit pair’s moves. The UK data dump in the spotlight amid the US holiday.

UK GDP Preview: GBP/USD may rise with Boris' hopes if upbeat forecasts are realized

The UK economy has likely rebounded in the second quarter after contracting beforehand.  The data comes after downbeat forecasts from the central bank and ahead of the elections. GBP/USD has room to recover if economists' expectations are realized.

Forex Weekly Outlook – Trade whipsaw set to continue, Powell’s testimony and top data eyed

Contradicting trade headlines whipsawed markets and will continue doing so. Can US data remain upbeat? Inflation, retail sales, and, most importantly, Powell’s testimony are all eyed. Here the highlights for the upcoming week.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD modestly up for the day, still below 1.0900

The EUR/USD pair is trading marginally higher at the end of Wednesday, as panic eased. Nevertheless, concerns about the coronavirus possible effects on economic growth keep investors in cautious mode.

EUR/USD News

AUD/USD at fresh multi-year lows and at risk of falling further

The Aussie remains among the weakest currencies in the FX sphere, amid Australian economic tights with China. AUD/USD trading at an over one-decade low in the 0.6550 price zone.

AUD/USD News

Crypto Today: Bitcoin bears force devastating break of $9000

BTC/USD is currently trading at $8740 (-6.50%), the bears have smashed the big $9000 mark to the downside. 

Read more

Gold surrenders early gains, refreshes session low around $1630 region

Gold surrendered its early modest gains and has now drifted into the negative territory, refreshing session lows around the $1634-335 region.

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex MAJORS

Cryptocurrencies

Signatures