Forex news from the European trading session - 19 August 2020
Headlines:
- US MBA mortgage applications w.e. 14 August -3.3% vs +6.8% prior
- WTO says indicators point to only partial uptick in world trade and output in Q3 2020
- Eurozone July final CPI +0.4% vs +0.4% y/y prelim
- Eurozone June current account balance €20.7 billion vs €8.0 billion prior
- UK July CPI +1.0% vs +0.6% y/y expected
- German virus cases continue to climb, Merkel warns against further relaxing restrictions
- White House Meadows says there are no US-China trade talks scheduled
Markets:
- NZD leads, GBP lags on the day
- European equities a little higher; E-minis up 0.1%
- US 10-year yields down 2.1 bps to 0.647%
- Gold down 1.0% to $1,981.70
- WTI down 0.8% to $42.53
- Bitcoin down 1.6% to $11,838
It was a session bereft of key headlines once again, as the market trades more sideways and choppy in anticipation of the OPEC+ meeting and FOMC minutes later today.
The dollar broke some key levels to the downside in trading yesterday but momentum flows were lacking despite an early push at the start of the day.
EUR/USD traded in a narrow range and kept around 1.1930-40 levels for the most part while GBP/USD touched a high of 1.3267 before retreating back to 1.3200 currently.
The aussie and kiwi traded higher with the former nearing its February 2019 high @ 0.7284 while the latter is extending gains on a pullback in AUD/NZD under 1.1000.
Elsewhere, gold also retreated back under $2,000 to test its 200-hour moving average near $1,980 and that is holding up for the time being.
European indices are also rather muted, holding a slight advance with US futures trading little changed throughout the session. Meanwhile, Treasury yields are keeping lower as 10-year yields are down by 2 bps to 0.647% ahead of North American trading.