Forex news from the European trading session - 28 July 2020
Headlines:
- UK July CBI retailing reported sales +4 vs -25 expected
- RKI warns that rise in German coronavirus cases is affecting many states
- Chinese online travel giant Ctrip reportedly in talks with investors to delist from Nasdaq
- ECB extends recommendation for European banks to freeze dividends, buybacks for the rest of the year
- Tokyo reportedly finds 266 new coronavirus cases in latest update today
- ICYMI: GOP lawmakers pushing for another round of stimulus checks
Markets:
- CHF leads, NZD lags on the day
- European equities lower; E-minis down 0.3%
- US 10-year yields down 0.8 bps to 0.607%
- Gold down 0.5% to $1,932.40
- WTI down 0.5% to $41.40
- Bitcoin up 0.8% to $10,973
There wasn't much notable headlines on the session but the market moves were pretty decent - especially in the commodities space as we saw an added dip in gold and silver.
Gold fell by roughly 2% in a quick drop from $1,940 to $1,907 while silver saw a decline of 9% in a move to $22.32 before recovering some ground on the day now.
But the pullback sort of underscores the risks with the commodities after having moved at such a parabolic pace over the past week or so, with the high in gold today at $1,981.
The drop in gold underpinned the dollar slightly but gains in the greenback remain more modest across the board.
EUR/USD eased from 1.1730 to 1.1700 before sticking closer to 1.1720-30 levels currently. Meanwhile, GBP/USD fell from 1.2860 to 1.2838 but is near unchanged now.
Elsewhere, the yen and franc are slightly firmer as US futures saw a bit of a drop in the session with USD/JPY slipping from 105.60 to 105.20. The pair remains arguably the key spot to watch in case of any extension of the dollar decline on a break under 105.00.
Looking ahead, flows and positioning remain the key drivers at the moment and the focus on gold and silver remains a key spot to keep an eye on in that regard.
Also, the TradeON Summit 2020 is already underway so make sure not to miss out on a great agenda of speakers still to come for the rest of the day! Sign up here.