Forex news from the European trading session - 23 July 2020
Headlines:
- EU chief Brexit negotiator Barnier: We are still far away in negotiations with the UK
- BOE's Haskel: I am concerned about the economy "getting stuck" and only recovering slowly
- UK's chief Brexit negotiator Frost: Substantial areas of disagreement remain
- China considers to not recognise BNO passports as a viable travel document
- UK July CBI trends total orders -46 vs -38 expected
- China says US is breaking down the friendship bridge between the two countries
- Tokyo governor confirms 366 new coronavirus cases in the Japanese capital today
- Germany August GfK consumer confidence -0.3 vs -4.5 expected
- China reportedly blacks out English football amid ongoing spat with the UK
Markets:
- CHF leads, GBP lags on the day
- European equities higher; E-minis up 0.3%
- US 10-year yields down 0.3 bps to 0.594%
- Gold up 0.5% to $1,880.70
- WTI down 0.4% to $41.75
- Bitcoin up 1.5% to $9,518
There weren't much notable headlines on the session as major currencies kept more mixed, with the dollar recovering some ground after early losses to start the day.
The risk mood kept more optimistic for the most part, though equity gains were more modest overall. AUD/USD started off around 0.7150 levels but gradually slipped to 0.7120-30 with NZD/USD also seeing similar tones in a drop from 0.6690 to 0.6650-60.
The euro stayed more perky though as it continues to knock on the door of daily resistance around 1.1595-00 and is seen just under there currently.
Meanwhile, the pound was pressured as Brexit talks continue to go nowhere with cable now easing slightly under 1.2700 and just below its 200-day moving average.
Despite the mixed tones in the currencies space, stocks maintained their advance throughout as we count down to another round of US weekly jobless claims later in the day.
The risk mood is still the key driver of sentiment so let's see how the market navigates through more US virus headlines, US-China tensions, and upcoming earnings releases.
