Forex news from the European trading session - 2 July 2020
Headlines:
- Russia's Novak: There's no decision yet to extend OPEC+ oil output cuts deal
- Tokyo governor Koike: Not going to call for large-scale business restrictions
- China: UK would bear all consequences for any move to offer residency to Hong Kong citizens
- Tokyo governor Koike: It is time to sound caution over infections in the capital
- Fauci: US never got the virus under control before reopening
- Switzerland June CPI -1.3% vs -1.2% y/y expected
- UK to introduce quarantine exemption list for as many as 75 countries to ease travel for holidaymakers
- Dutch PM Rutte: Negotiations on EU recovery fund will take time but compromise is possible
- Tokyo to set up virus task force as daily infections hit its highest count in two months
- Fed's Bullard: We're still in the middle of the crisis here
Markets:
- NZD leads, CAD lags on the day
- European equities higher; E-minis up 0.8%
- US 10-year yields up 0.7 bps to 0.682%
- Gold up 0.2% to $1,772.97
- WTI up 0.7% to $40.12
- Bitcoin down 0.6% to $9,182
There wasn't much notable action in European morning trade as the focus of the market stays on the US non-farm payrolls report and the next set of coronavirus headlines just before the 4th of July long weekend.
Risk was more positive throughout the session as investors kept the early optimism going with European indices now pushing near 2% gains while US futures are up nearly 1%.
That in turn is putting a damper on the dollar and yen for the most part, with the kiwi leading the charge. NZD/USD is seen gaining from just under 0.6500 to 0.6530.
The aussie didn't quite follow as much, with AUD/USD moving from 0.6915 to 0.6930 - possibly weighed down a little by a continued rise in virus cases in the state of Victoria.
The euro and pound kept pace with gains against the dollar, with EUR/USD pushing towards 1.1300 before backing off and cable keeping firm above 1.2500.
There's still plenty to play for in the session ahead and just be mindful that the US fixed income and money markets will observe an earlier close today. But fret not dip buyers, stocks will carry on trading as per normal until the end of the day. ;)
