Forex news from the European trading session - 27 November 2020
Headlines:
- UK's Frost: For a Brexit deal to be possible, it must fully respect UK sovereignty
- Brexit: Gaps on key outstanding issues remain large, says EU diplomat
- EU's Barnier says that he will be traveling to London this evening for Brexit talks
- Barnier reportedly told EU envoys he cannot say at this stage if a deal is possible
- France November preliminary CPI +0.2% vs +0.1% y/y expected
- China says that Australia relations have taken a 'nosedive'
- ICYMI: Brexit face-to-face talks to resume in London
- Tokyo reports a record 570 new coronavirus cases in latest update today
- ECB's Panetta: It is clear that our stimulus so far has not been sufficient
- Germany sees total confirmed coronavirus cases surpass the 1 million mark
Markets:
- CAD leads, GBP lags on the day
- European equities a little higher; E-minis up 0.1%
- US 10-year yields down 2.5 bps to 0.857%
- Gold down 0.5% to $1,807.60
- WTI down 0.7% to $45.35
- Bitcoin down 0.5% to $16,977
It was a largely quiet session with a couple of Brexit headlines helping to move things along, as the market observes little change amid the Thanksgiving holiday period.
US markets will return later today but for a half-day, but liquidity conditions are set to remain thinner than usual as most traders and investors will be off on holiday.
Major currencies observed little change for the most part, with the pound being arguably the only notable mover during the session.
Cable touched a high of 1.3380 early on before slipping back to near unchanged level around 1.3350-60, before a couple of Brexit headlines crossed and brought the pair down below its 100-hour moving average to a low of 1.3312.
EU chief Brexit negotiator confirmed that he will be headed to London for more talks but all the reports today suggests that there is still an impasse for the time being.
It could all be a play on the optics and more political theater to stretch the toughness in getting to a "deal" but either way, it hints that there is likely nothing positive set to follow before the market closes this week.
Meanwhile, EUR/USD kept above 1.1900 but isn't chasing a further break of the week's high of 1.1940. USD/JPY eased to just under 104.00 earlier before paring some of those losses as the session moved along.
Elsewhere, commodity currencies maintained light gains against the dollar as they keep with most of the momentum from earlier in the week.
And gold continues to trade sideways, consolidating after a drop towards $1,800 as price action sticks around there and $1,818 for now.
Looking ahead, it could well be yet another quiet affair with the Thanksgiving holiday mood still persisting so there might not be much action until we get back into the thick of things next week. I wish you all a great rest of the day and a great weekend ahead!
