Wednesday , September 18 2019
Home / BK Asset Management / Risk On Tone Keeps FX Steady

Risk On Tone Keeps FX Steady

Summary:
Market Drivers August 21, 2019 BoJo in talks with Merkel and Macron Risk on flows dominate Nikkei -0.28% Dax +1.11% UST 10Y 1.59% Oil /bbl Gold 99/oz BTCUSD 100 Europe and Asia: GBP UK PSNB -2.0B vs. -3.7B North America: CAD CPI 8:30 USD Existing Home Sales 10:00 Another very quiet night of trade in FX today as markets remain in a state of equilibrium amidst little fresh news and generally quiet summer flows. A better risk-on tone has helped to keep both USDJPY and USDCHF slightly bid but the moves have been modest. Ahead of the meeting between Boris Johnson and Merkel and Macron German officials tried to clarify their stance on the backstop for Northern Ireland noting that an open border was a non-negotiable point. Yesterday cable took off after media reports that Merkel

Topics:
Boris Schlossberg considers the following as important: , , , ,

This could be interesting, too:

Boris Schlossberg writes What Will the Fed Do?

Kathy Lien writes Why is the Dollar So Strong Ahead of a Rate Cut?

Boris Schlossberg writes Dollar Gets Stronger

Kathy Lien writes Why Investors are Nervous Ahead of FOMC

Market Drivers August 21, 2019
BoJo in talks with Merkel and Macron
Risk on flows dominate
Nikkei -0.28% Dax +1.11%
UST 10Y 1.59%
Oil $56/bbl
Gold $1499/oz
BTCUSD $10100

Europe and Asia:
GBP UK PSNB -2.0B vs. -3.7B

North America:
CAD CPI 8:30
USD Existing Home Sales 10:00

Another very quiet night of trade in FX today as markets remain in a state of equilibrium amidst little fresh news and generally quiet summer flows. A better risk-on tone has helped to keep both USDJPY and USDCHF slightly bid but the moves have been modest.

Ahead of the meeting between Boris Johnson and Merkel and Macron German officials tried to clarify their stance on the backstop for Northern Ireland noting that an open border was a non-negotiable point. Yesterday cable took off after media reports that Merkel was open to “practical” solutions but if today’s talks lead to no progress than cable may give up all of yesterday’s gains.

The central sticking point in Brexit negotiations remains the issue of the Irish border and if that condition can be overcome perhaps by simply leaving the status of the border as is and extending the talks on that point into the future while ratifying the rest of the agreement, cable would see such a solution as a major positive for the currency.

Meanwhile, the markets remain generally quiet with traders awaiting the Fed minutes later today and more importantly the Jackson Hole symposium later this week as markets look for any further monetary hints from the Fed.

Boris Schlossberg
Real time analysis of forex market from co founder of BKForex Tweets are commentary only.

Leave a Reply

Your email address will not be published. Required fields are marked *