Forex news from the European trading session - 8 July 2020
Headlines:
- US MBA mortgage applications w.e. 3 July +2.2% vs -1.8% prior
- EU's Barnier: Useful discussion with UK's Frost yesterday
- ECB's de Guindos: Recent data suggests we can be more optimistic about growth
- Gold hits $1,800 for the first time since November 2011
- China says that it is to restrict visas for US officials over Tibet issue
- France's Castex: There won't be another coronavirus lockdown like we had in March
- Tokyo reportedly finds 75 new coronavirus cases in latest update today
- ECB's Lagarde: Financial markets have calmed down enormously
- Australia: ACT reports 3 new coronavirus cases, delays further easing of restrictions
Markets:
- Major currencies little changed
- European equities lower; E-minis up 0.1%
- US 10-year yields up 0.8 bps to 0.648%
- Gold up 0.4% to $1,802.40
- WTI up 0.1% to $40.65
- Bitcoin up 0.4% to $9,292
It was a largely quiet session as the market is finding little conviction on how to proceed following the mixed past two days to start the week.
Equities showed little poise in general, with European stocks keeping slightly lower following the late drop in US indices from trading yesterday. US futures kept close to flat levels throughout and that is leaving investors little to work with on the session.
As such, major currencies didn't do a whole lot and remains trapped within narrow ranges for the most part. EUR/USD ranged around 1.1270-90 while AUD/USD hovered around 0.6930-40 levels in European morning trade, failing to find any real momentum.
The only notable move is in the commodities space with gold rising back above $1,800 for the first time since November 2011. Silver is also enjoying a hot day, rising by more than 1% to around $18.50 going into North American trading.
All eyes will turn back towards Wall Street later today and how investors will digest the latest round of coronavirus data from the US. Will the jitters start showing today or will dip buyers win out again as they have done time and time again?