Let’s check the situation in the market. Data showed that in December, German industrial orders unexpectedly plunged. After that On Thursday, the euro struggled to stay above a two-month low. In the opening months of 2020, most probably, the eurozone economy will remain sluggish.
Comparing the November contracts, German goods fell 2.1% in December. It is the most significant drop since February. A Reuters poll forecasted 0.6% rice.
Some large option structures and weak data kept investor sentiment subdued. Some support found the euro just below $1.10.
Tensions rose between Britain and the European Union over a post-Brexit trade deal. Thus, the British pound and the euro remained under pressure.
On Thursday, the European Union’s market watchdog asked its British counterpart to ensure that the London Metal Exchange and ICE Futures Europe fully comply with EU market transparency rules for commodity derivatives.
A media report indicated that the European Union would look to re-write a significant set of European financial regulations known as Mifid II. After it on Wednesday, the pound fell.
Euro and European Union
Marc Chandler is a chief market strategist at Bannockburn Global Forex LLC. He said that the European Union and the United Kingdom had not begun the formal process of negotiations of trade talks. Nevertheless, both sides appear that they are offending each other.
Last week the euro reached $1.09920. Today against the dollar, the euro EUR=EBS was trading at $1.09975.
Later in the day, options amounting to nearly $1 billion were expiring around $1.10 levels. Traders said that it is also keeping the cash markets in a tight range.
The Australian dollar is siring for a fourth straight day. Beijing unexpectedly announced that it would reduce tariffs on some United States imports. After it, Chinese yuan gained.
On Thursday, China said it would halve tariffs on some United States imports. It is bolstering hopes that the global economy will be able to avoid a significant shock from China’s coronavirus outbreak.
That is the leading news of today.
