During the European session, the market mood turns to risk-on, with European indices traded higher, higher yield, higher volatility, and weaker in safe-havens.
In the FX markets, AUD is the weakest currency across the board despite the risk-on tone, followed by USD, and JPY. The AUD start to lose after RBA Governor Philip Lowe announced the rate cut and further easing.
On the other hand, EUR is leading currencies, benefitted from weaker USD, and comment from ECB. ECB’s Villeroy says that the ECB accommodative monetary policy stance at present is appropriate.
Meanwhile, GBP traded higher in the early European session but retreated after UK PM Boris Johnson says that the country gets ready for an Australia-style deal, which means to no-deal Brexit.
Ahead of the New York session, we expect that investors will remain to focus on the Brexit talks. However, we should not forget that the US will release its retail sales figures, which is set to increase moderately.
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