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The yen is still the top-performing currency of the day (so far). However, it took some hits and was the worst-performing currency of the morning London session.

One currency’s loss is another currency’s gain. And the Greenback was initially the main beneficiary of the yen’s stumble since the Greenback was the top-performing currency for most of the session.

Sadly for the Greenback, the euro found buyers late into the session. And there were apparently enough buyers to steal a win from the Greenback.

The euro did not reign supreme, though, since the pound was steadily on the rise and eventually took the top spot from the euro at the end.

  • Italian final HICP m/m: no change from -1.4% as expected
  • Italian final HICP y/y: no change from 1.9% as expected

Major Events/Reports:

Turkey-related news (via a Tweet)

The above tweet made the rounds very late into the session. And to give that tweet its proper context, Turkey’s ongoing imprisonment of Brunson, a U.S. pastor, has been a source of political tensions between the U.S. and Turkey.

And last week, it also became a source of economic problems (for Turkey) since Trump announced new sanctions on Turkey last week, partly because of Brunson’s imprisonment.

However, it should be noted that Reuters quickly released a report that cited an unnamed U.S. Embassy official as saying that, well, the above tweet is basically Fake News.

Commodities broadly lower

Almost all commodities were hit by selling pressure and were in the red during the morning London session.

And we can probably attribute the broad-based slide in commodity prices to the Greenback’s overall strength. After all, a stronge U.S. dollar means that globally-traded commodities become relatively more expensive to buy, especially for market players who are holding non-US$ currencies.

In fact, market analysts were blaming the slide in gold prices solely on Greenback strength.

And for reference, the U.S. dollar index was up by 0.16% to 96.33 for the day by the time the session came to an end.

Other than that, market analysts also say demand for some base metals was stunted because of the ongoing troubles over at Turkey.

The dip in oil prices, meanwhile, were also attributed by market analysts partly to lingering trade war fears, which were partially offset by the reimposition of U.S. sanctions on Iran.

Base metals got a beating.

  • Copper was down by 0.97% to $2.716 per pound
  • Nickel was down by 0.22% to $13,785.00 per dry metric ton

Precious metals were down hard despite the risk-off vibes in Europe.

  • Gold was down by 1.24% to $1,203.90 per troy ounce
  • Silver was down by 1.11% to $15.125 per troy ounce

Oil benchmarks were also in the red.

  • U.S. WTI crude oil was down by 0.52% to $67.28 per barrel
  • Brent crude oil was down by 0.23% to $72.64 per barrel

Shaky start in Europe

Europe is starting the new trading week where it left off – with some risk aversion – since the major European equity indices were kicked lower during the morning London session.

And like last Friday, market analysts were blaming the feeling of doom and gloom on contagion fears related to Turkey, which really put the hurt on European banks, poisoning overall risk sentiment in the process.

  • The pan-European FTSEurofirst 300 was down by 0.55% to 1,502.23
  • Germany’s DAX was down by 0.62% to 12,346.70
  • The blue-chip Euro Stoxx 50 was down by 0.57% to 3,403.25

The risk-off vibes in Europe also pulled U.S. equity futures lower, which implies that the risk-off vibes may carry over into the upcoming U.S. session.

  • S&P 500 futures were down by 0.28 to 2,828.75
  • Nasdaq futures were down by 0.34% to7,401.50

Global bond yields rise

Despite the risk-off vibes in the European equity and U.S. equity futures markets, global bond yields were actually on the rise and those are still in the red are off their lows.

  • German 10-year bond yield down by 1.24% to 0.319%
  • French 10-year bond yield up by 3.18% to 0.691%
  • U.K. 10-year bond yield up by 0.72% to 1.252%
  • U.S. 10-year bond yield up by 0.56% to 2.875%

Major Market Mover(s):


The pound was the best-performing currency of the morning London session. There were no apparent catalysts for the pound’s rise, but it’s possible that we’re just seeing more short-covering after last week’s pound bashing and ahead of this week’s top-tier data.

GBP/USD was up by 23 pips (+0.18%) to 1.2767, GBP/NZD was up by 48 pips (+0.25%) to 1.9414, GBP/AUD was up by 41 pips (+0.24%) to 1.7547


Most EUR pairs were actually range-bound for the duration of the session. However, EUR pairs got jumped by buyers very late into the session.

And the euro’s jump appears to have been triggered by that Turkey-related tweet.

EUR/USD was up by 9 pips (+0.08%) to 1.1401, EUR/NZD was up by 24 pips (+0.14%) to 1.7335, EUR/AUD was up by 20 pips (+0.13%) to 1.5669


The yen showed weakness when the morning London session rolled around, even though Turkey-related fears persisted.

Global bond yields were on the rise, though, and it’s likely that JPY pairs were taking directional cues from those. Other than that, the Turkey-related tweet also apparently gave the yen a final bearish kick.

USD/JPY was up by 29 pips (+0.26%) to 110.56, EUR/JPY was up by 45 pips (+0.36%) to 126.06, NZD/JPY was up by 64 pips (+0.46%) to 141.17

Watch Out For:

  • No economic reports on the docket for the U.S. session