Session Wraps - Major Forex Headlines wrapped up by trading session

Forex news for Asia trading for Thursday 26 November 2020

Asia FX traded in small ranges today ahead of the long US holiday coming up for Thanksgiving.

There was little news flow of importance for the major traded forex pairs although the Bank of Korea did announce its latest policy decision (on hold) and promised intervention on the won if FX markets behave in a herd-like manner, adding that the appreciation in the won (KRW) has been too fast.

For data it was the New Zealand trade balance and Australian capex figures. Neither had too much impact on the session.

The USD has traded just a little weaker; EUR, GBP are both up a touch while AUD and NZD are net little changed. Gold has moved a few dollars higher.

As I post BTC is getting sold off in a sharpish move down under 18k (hovering around there as I go to print).

Forex news for Asia tradingfor Thursday 26November 2020

Note that US markets are closed on Thursday.

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Forex news for New York trade on November 25, 2020:

Markets:

  • Gold down $1 to $1806
  • WTI crude oil up 85-cents to $45.77
  • US 10-year yields flat at 0.88%
  • S&P 500 down 4 points to 3631
  • New Zealand dollar leads, USD lags
Flows and data competed today but ultimately it was flow that won out as the US dollar slid across the board ahead of the Thanksgiving holiday.

The data had something for everything as claims continued to back up and personal income was surprisingly soft but new home sales and durable goods orders were strong. Ultimately though, any moves on the data were hard to detect.

Sterling impressively handled a few downtrodden headlines as it rallied right through them and continued to march to 1.3387 on strong bids through the London fix.

The euro also ignored new restrictions in Germany and finished near the highs of the day at 1.1917. That was generally a soft-USD story as it lost ground on most fronts.

The top performer this month continued to outperform as the kiwi marched above 0.7000 to pace the commodity currencies. CAD got a slight lift from higher oil prices but it was generally a tepid response to fresh crude highs.

One asset that didn't get much help from the softer US dollar was gold as it slipped to $1805 after rising as high as $1817. Bulls were looking for a bit more from the FOMC minutes. Certainly there was lots of talk about bond buying and when there's smoke there's fire but I don't sense any urgency from the Fed and that could mean more action is a 2021 story.

Forex news wrap ticker

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Author: Justin Low

Forex news from the European trading session - 25 November 2020

Headlines:

Markets:

  • NZD leads, CAD lags on the day
  • European equities mixed; E-minis down 0.1%
  • US 10-year yields down 0.5 bps to 0.875%
  • Gold up 0.3% to $1,813.55
  • WTI up 0.7% to $45.25
  • Bitcoin up 2.0% to $19,331

EOD 25-11
It was a largely quiet session with little of note in terms of headlines or data releases for investors and traders to work with.

After a surge higher in risk yesterday, more tepid tones were observed in trading today and that is seeing little change across the market in general.

Equities held slight gains to start the session but fizzled to trade mixed and little changed currently ahead of North American trading.

The bond market was disinterested for the most part and put together, that is keeping major currencies more mixed and also not much changed so far today.

The dollar was mildly softer initially with EUR/USD climbing from 1.1900 to 1.1930 but that faded soon enough, with the pair now hovering around 1.1880-90 levels.

GBP/USD had a choppy session, rising from 1.3340 to 1.3385 before the highs yesterday capped the upside momentum and the pair fell to 1.3305.

The 100-hour moving average there held the drop, as it has done previously this week, and cable is back up to trading around 1.3350 currently.

The aussie and kiwi were initially weaker but have seen those declines trimmed, though AUD/USD is hovering around 0.7350 but off lows of 0.7325 earlier.

Elsewhere, gold is continuing to keep a defense above $1,800 and its 200-day moving average for now while oil is keeping with the bullish breakout as price has been holding above $45 throughout the session.

Looking ahead, expect a potentially more hectic session to come as US traders will be preparing for the Thanksgiving holiday starting from tomorrow.

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Forex news for Asia trading for Wednesday 25 November 2020 

News and data flow was fairly light today but with a significant press conference from the Reserve Bank of New Zealand. I'll come back to that.

The big mover on the session thoiugh has been the euro, EUR/USD climbing back above 1.19. Also moving were regional stocks, all higher after the strong session in the US on Tuesday. Japanese stocks (Nikkei undex) gapped open to their highest since May of 1991.

Reserve Bank of New Zealand Governor Orr spoke at a news conference, most notably:

  • he said that while the Bank wanted to be 'operationally' prepared for negative rates the Bank has not yet said it'll be going negative
  • he also did not mention comments he has made previously that he wants to work to get bond yields lower

Both these points underpinned the NZD on the session here. Having said this NZD/USD has not done a lot, its up just a touch on the day. Cable is fairly flat and AUD/USD has dropped back from early highs above 0.7370. Australian construction work data (Q3) was overall lower, but public sector worked increased (private sector down) and with a likely public housing construction pick up ahead (admittedly from woeful historic lows) and state government coronavirus-combating spending ahead should see a boost to this measure in the quarters to come.

USD/JPY, USD/CAD, USD/CHF are all little changed.

As I post BTC has dribbled back under 19K, some market-relevant news crossed earlier (see bullets above). 

Forex news for Asia tradingfor Wednesday 25November 2020 China's Sinopharm has submitted its application for COVID-19 vaccine use

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