Forex news from the European trading session - 24 July 2020
Headlines:
- Japan PM Abe: Current situation does not call for state of emergency declaration
- UK July flash services PMI 56.6 vs 51.5 expected
- Eurozone July flash services PMI 55.1 vs 51.0 expected
- European Commission says Airbus move removes any justification for US tariffs
- Germany July flash manufacturing PMI 50.0 vs 48.0 expected
- Tokyo reportedly finds 260 new coronavirus cases in latest update today
- France July flash services PMI 57.8 vs 52.4 expected
- Chinese equities close sharply lower to end the week
- UK June retail sales +13.9% vs +8.3% m/m expected
- China says that responsibility of the situation rests entirely with the US
- China orders the US to close consulate in Chengdu
Markets:
- JPY leads, AUD lags on the day
- European equities lower; E-minis down 0.3%
- US 10-year yields up 0.8 bps to 0.586%
- Gold up 0.4% to $1,894.03
- WTI up 0.8% to $41.41
- Bitcoin down 0.5% to $9,545
The session began with a more risk averse mood after China ordered the closure of the US consulate in Chengdu but the mood gradually leveled off thereafter, though markets are largely keeping more defensive towards the closing stages of the week.
European equities remain softer though off earlier lows, and a similar mood can be observed in US futures as well. Treasury yields fell early on but are now closer to flat levels, with the drop earlier underpinning the yen with USD/JPY falling from 106.50 to 106.17.
The yen is still leading gains in the currencies space but apart from that, overall moves remain rather modest with EUR/USD sticking around 1.1585-05 for the most part.
Meanwhile, cable is still trading little changed around 1.2720-50 while AUD/USD is testing waters under its 100-hour moving average around 0.7070-90.
Elsewhere, gold buyers are still keeping a watchful eye targeting $1,900 and price is trading just under there for the time being.
It is still all about the risk mood as we look to close out the week with a couple of key themes playing out as we get into North American trading.
