Forex News from the European Trading Session – August 26, 2020
- NZD leads, EUR is late for the day
- European mixed equities; Apartment E-minis
- US 10-year yields up 3bp to 0.714%
- Gold down 0.7% to $ 1,915.60
- WTI down 0.4% to $ 43.20
- Bitcoin up 1.2% to $ 11,399
It was a largely quiet session, with the market starting to focus on Fed Chairman Powell’s speech tomorrow at the Jackson Hole Symposium.
Stocks lacked enthusiasm for the most part, with European stocks more mixed, while US futures held near stable levels throughout the day.
Treasury yields are a little higher again and this remains a key point to watch ahead of central bank speakers barrage in the second half of the week.
However, the lack of momentum leaves little work with major currencies in trading today as we see narrower ranges prevailing for the most part.
EUR / USD sits a little lower just above 1.1800, but mostly holds around 1.1810-20 during the session, with gains limited by its 100 hour moving average @ 1.1820.
USD / JPY eased a bit from 106.40 to 106.30 despite the surge in yields, but does not do much overall as the trading range remains narrower.
Elsewhere, the dollar has changed little across the board, with other major currencies showing little composure to break the pace so far.
Going forward, we will receive orders for durable goods in the United States for July, but we expect the main focus to remain on anticipating the Jackson Hole Symposium starting tomorrow. This could keep stocks more entrenched in North American trade later in the day.