Forex news from the European trading session - 4 August 2020
Headlines:
- Risk a little choppy to start the day, what's next?
- Eurozone June PPI +0.7% vs +0.6% m/m expected
- ECB's Lane: ECB is committed to providing stimulus needed to support the economic recovery
- Tokyo confirms 309 new coronavirus cases in latest update today
- Three takeaways from the RBA August policy decision
- Full statement of the RBA August monetary policy meeting decision
- RBA leaves cash rate unchanged at 0.25%
Markets:
- CHF leads, GBP lags on the day
- European equities lower; E-minis down 0.4%
- US 10-year yields down 1.3 bps to 0.54%
- Gold down 0.2% to $1,972.64
- WTI down 1.7% to $40.32
- Bitcoin down 2.4% to $11,115
It was a quiet and largely choppy session for the most part as the market is trying to find a theme to latch onto to kick start the new week.
Stocks began the session higher before settling lower ahead of North American trading, and the dollar started off softer before firming across the board in the past hour.
EUR/USD nudged higher to a high of 1.1806 but ran into resistance from the figure level and its 100-hour moving average before retreating to lows around 1.1750-60.
Cable also saw some back and forth action as price moved to a high of 1.3108 before falling back under its own 100-hour moving average near 1.3060 in a drop to 1.3020.
Meanwhile, AUD/USD was little changed around 0.7120-30 after the RBA decision and pushed higher to 0.7153 - testing its 200-hour moving average. But that stalled the upside momentum and price is now back to 0.7130 levels currently.
USD/JPY kept more steady around 106.00-10 levels for the most part.
Elsewhere, gold is a little lower but buyers are still maintaining a more bullish bias above its own 100-hour moving average for the time being.
The market is still trying to find something to work with to start the new week but as we lack a key theme, the focus may slowly turn towards a lull going into US non-farm payrolls on Friday potentially.
For now, let's see whether Congress can make any breakthrough in the day ahead.
