The near-term bias continues to favour sellers at the moment but they are finding it tough to chew through bids and swing region support around 109.50-70 with further near-term support seen closer @ 109.44.
Swiss 10-year bond yields have also eased to three-month lows around -0.69% but we're also seeing a drop across global yields coincidentally. 10-year Treasury yields are now down by 3.5 bps to 1.734% so that is likely to keep the yen more firm on the day. ForexLive
Negative rates are a necessityNegative rates have side effects, SNB trying to minimise those side effectsBalance of risks is tilted to the downsideSNB conducts independent monetary policy, does not follow the ECBBut needs to take international environment into accountSNB could still cut rates if neededFranc is still highly valuedMust maintain negative rates, interventionsSNB can intervene as necessary
In October last year, there were many complaints that new hearings should be warranted after the ECB resumed QE via its September stimulus package - with some even going as far as saying that QE was "absurd and beyond the ECB's jurisdiction".
Buyers failed in that attempt as the narrow trading range around $1,540 to $1,563 continues to define price action in gold for almost two weeks now - effectively leaving traders in limbo in trying to search for a meaningful move in the commodity.
Adds to the other stories surrounding the situation from earlier today. It still looks as though that the developments of the nCoV outbreak may get worse before it gets better but here is to hoping that it won't result in any massive epidemic worldwide.
This keeps in tune with the more defensive risk mood from Asia Pacific trading and bond yields are also reaffirming that as 10-year Treasury yields are still down 2.4 bps to 1.745%.
And the saga continues.. If this is akin to Brexit levels of 'soon', then don't hold your breath. In any case, just be mindful of the developments here as they can also be viewed as a proxy for US-China relations in the bigger picture of things.
AUD/USD is back up near the highs for the day as the aussie pushes gains to start the session amid a sharp repricing in the rates market after the better jobs report earlier.
Uncertainty is the major downside risk for global economyWants to see governments stepping up actionThe world is more shock-prone as it is interconnected currentlyWe are in a better place at the start of 2020 than in 2019Sees signs of trade, industrial slowdown bottoming outConsensus is that global rates will be low for longerFed, PBOC have policy spaceOther countries need to look at fiscal tools more closely
He notes that growth in employment has been driven mostly by part-time jobs for the past two months and could reverse easily. Adding that a large number of retail chains in the country were shut this month, which suggests consumption will remain weak.
This is keeping in tune with what we have seen in Asia Pacific trading, although the declines are much more modest as compared to what we're seeing in Chinese stocks today.
My son and daughter are decent tennis players (My son is in the UK top 10 for 12U and daughter top 60 or so for 14U, so they are decent, committed players). They get that from their mother, not me, and I regularly get beaten by any of them if I ever dare to pick up a tennis racket. As you can imagine, tennis is a regular feature of our lives and competition is, quite literally, a way of life.
Chinese equities are the big talking point as they post heavy declines - more than 3% - ahead of the holiday period starting tomorrow. This comes as investors continue to be gripped by fears surrounding the nCoV outbreak, with Wuhan effectively being quarantined.
I reckon this is going to be a key spot to watch in trading today i.e. the performance of US equities. Despite quite extensive mood in Asian equities - China especially - the reaction in US futures is hardly anything to take much note of.
Happy ECB day, everyone! Hope you're all doing well as we get things going in the session ahead. It's been a decent start to the day with markets leaning more defensive as we see a bit of a plunge in Chinese stocks, nearly 3% losses among major indices.
As a result, we're seeing more defensive flows with 10-year Treasury yields dropping to two-week lows, down by 2.6 bps to 1.743% at the moment. That in turn is keeping yen pairs pressured, with USD/JPY resting at 109.56 currently.
You can attribute the drop to growing virus concerns but the fact is that uncertainty breeds fear and with investors not sure what to expect ahead of the Chinese New Year holiday period starting tomorrow, we're seeing money being taken off the table.
Good day, everyone! Hope you're all doing well as we look to get things going in the session ahead. The yen is a little higher as bond yields are weaker to start the day. Gold followed in a slight nudge higher but is back to flat levels currently.
Slight delay in the release by the source. The preliminary report can be found here. Not much change in the leading indicator relative to initial estimates, reaffirming the weakest reading since November 2009.