Forex news from the European trading session - 28 September 2020
Headlines:
- BOE's Ramsden: We are not about to use negative rates imminently
- Japan to begin lifting travel warnings starting from October - report
- EU said to be still waiting on the UK to move on Brexit talks
- SNB total sight deposits w.e. 28 September CHF 704.5 bn vs CHF 703.9 bn prior
- Russia's Novak: Global oil market has stabilised over the last few months
- Thailand's virus task force approves special tourism visa, to be effective 1 October
Markets:
- GBP leads, USD lags on the day
- European equities higher; E-minis up 1.3%
- US 10-year yields up 1.6 bps to 0.671%
- Gold down 0.1% to $1,859.08
- WTI up 0.4% to $40.41
- Bitcoin up 1.5% to $10,872
It was a largely quiet session for the most part, but stocks are rallying further after finding some steadier footing from last Friday's gains.
European equities opened higher and built on gains to climb by nearly 2% across the board, with the DAX leading gains with a jump of 2.8%.
US futures also ran higher, with S&P 500 futures up by 1.3% and Nasdaq futures up by 1.7% as we start to look towards North American trading.
That led the dollar lower in the currencies space but the pound is the biggest mover as it crept higher on Brexit hopes initially before BOE policymaker Ramsden brushed aside talks of negative rates and that gave the quid a shot in the arm.
Cable moved up from 1.2770 to 1.2830 initially before racing higher to 1.2930 after buyers managed to break above the 200-hour moving average.
Elsewhere, it was just mostly the dollar moving lower with AUD/USD inching higher from 0.7045 to 0.7070 and EUR/USD moving up from 1.1635 to 1.1670.
USD/JPY kept more steady around 105.30-40 levels for the most part.
All eyes will stay on the dollar to see if it can keep gains from last week as well as the risk mood to see if US stocks can build on the bounce from Friday, with the S&P 500 looking to keep a rebound upon nearing a test of its 100-day moving average last week.