Forex news from the European trading session - 13 August 2020
Headlines:
- China reiterates that it hopes US creates conditions for implementation of Phase One trade deal
- IEA cuts oil demand forecasts over gloomy outlook on global travel
- Japan, Singapore reportedly to ease border restrictions from September
- German health minister says optimistic of coronavirus vaccine in the coming months
- Germany July wholesale price index +0.5% vs +0.6% m/m prior
- India reports record daily new coronavirus cases of 66,999 in latest update today
- Tokyo coronavirus panel maintains highest alert for infection spread
Markets:
- GBP leads, NZD lags on the day
- European equities a little lower; E-minis down 0.1%
- US 10-year yields flat at 0.674%
- Gold up 0.8% to $1,931.54
- WTI down 0.2% to $42.62
- Bitcoin flat at $11,577
It was a largely quiet session overall, though there were some modest moves in the currencies space as the dollar weakened to start the day.
The kiwi is the laggard after the RBNZ stated they would prefer a weaker currency and reaffirmed that they are open to the idea of negative rates down the road.
Despite the dollar staying pressured, NZD/USD keeps weaker on the session around 0.6558-75 for the most part.
EUR/USD kept its advance above 1.1800 in a push from 1.1820 to 1.1850 while GBP/USD moved up from 1.3070 to test waters just above 1.3100.
USD/JPY saw more choppy action as price eased to a low of 106.57 early one before trading to session highs now close to 107.00 ahead of North American trading.
The risk mood remains more tepid as European indices are a touch lower while US futures showed very little poise to break away from more flat levels on the session.
Elsewhere, precious metals are seeing modest gains but nothing that wasn't seen during the wild ride in trading yesterday. Gold is keeping gains of just under 1% around $1,930 levels while silver is pushing near 4% gains around $26.50.
US jobless claims will be the next thing to watch but that is unlikely to do much, so focus will stay on which way the risk direction will lean towards as Wall Street enters the fray.