Forex News from the European Trading Session – August 25, 2020
- GBP leads, JPY is late on the day
- Higher European equities; E-minis up 0.4%
- US 10-year yields up 3bp to 0.685%
- Gold up 0.1% to $ 1,931.40
- WTI up 0.5% to $ 42.81
- Bitcoin Down 1.0% to $ 11,618
The more optimistic tones surrounding the US-China trade talks spilled over into European morning trade today, keeping risk in a better place to start the week.
European stocks rallied and held gains throughout, with US futures also pushing higher during the session. Bond yields soared as 10-year Treasury yields rose 3bp to 0.685%, putting pressure on the Japanese yen.
Even though the dollar remained more flexible, the USD / JPY fell from 106.00 to 106.50 and this underlines the decline of the yen on the session. EUR / JPY climbed from 125.20 to 126.00 while GBP / JPY also rose from 138.80 to 139.90 in the European morning.
Elsewhere, EUR / USD pushed higher with a more bullish German Ifo report also helping to keep risk tones more positive on the session. The pair went from 1.1810-20 to 1.1843 with the cable also seen going from 1.3100 to 1.3140.
Commodity currencies maintained a modest lead against the greenback, with AUD / USD rising from 0.7160 to near 0.7180 while USD / CAD rose from 1.3230 to levels slightly below 1.3200 as we turn to North American trade.
This is the more positive risk tilt for now, but expect the market to continue to focus on the anticipation of Fed Chairman Powell’s speech on Thursday, not to mention the late flows. months that will play a role along the way in the exchanges this week.