Forex news from the European trading session - 27 August 2020
Headlines:
- EU's Dombrovskis to be given temporary charge of trade following Hogan resignation
- Hurricane Laura weakens to Category 3 - NHC
- Japan prime minister Abe to serve out term as LDP leader, says top aide
- Eurozone July M3 money supply +10.2% vs +9.2% y/y expected
- German government said to propose extending ban of large events for the remainder of the year
- Amazon expands grocery business with first Fresh store in Los Angeles
- France August business confidence 91 vs 88 expected
- Hurricane Laura makes landfall in Southwest Louisiana
- BOJ's Suzuki: BOJ will ease monetary policy further without hesitation if needed
- Switzerland Q2 GDP -8.2% vs -9.0% q/q expected
- TikTok chief executive Kevin Mayer reportedly quits after Trump threatens to ban app
Markets:
- AUD leads, CHF lags on the day
- European equities a little lower; E-minis down 0.3%
- US 10-year yields down 1.3 bps to 0.675%
- Gold down 0.6% to $1,942.70
- WTI down 0.8% to $43.04
- Bitcoin down 1.3% to $11,369
It was a largely quiet session as major currencies kept in more narrow ranges for the most part with the dollar looking mixed ahead of Fed chair Powell's speech.
The dollar did gain a slight bid in the past hour or so but has very much given most of that back as traders wait on what Powell has to say later today.
EUR/USD eased from 1.1830 to 1.1794 but is now back around 1.1810-20 while GBP/USD fell from 1.3200 to 1.3165 before moving back to the figure level now.
USD/JPY got a slight nudge higher during the session from 106.00 to 106.20 but that was faded as well in a bit of a noisy movement, with the pair now around 106.00-10.
The aussie and kiwi are mildly higher but not really signifying much on the session.
Elsewhere, equities are looking more tepid and bond yields are a little lower on the day. But all eyes are on Powell so the early moves - or lack thereof - aren't telling us much.
