Session Wraps - Major Forex Headlines wrapped up by trading session

Forex news for North American trade on September 25, 2020:

Markets:
  • Gold down $6 to $1861
  • US 10-year yields down 1.3 bps to 0.65%
  • S&P 500 up 52 points to 3298
  • WTI crude down 21-cents to $40.10
  • USD leads, EUR lags
We came into the day on a delicate footing and with stock futures lower. The early going was more of the negativity and the commodity currencies and euro continued to struggle while the dollar made fresh highs.

EUR/USD made a double top in Asia at 1.1685 and it was all downhill from there in a steady slide to 1.1612 at the London close. It bounced 20 pips from there but that was uninspiring considering the positive tone in stocks.

It was a similar story of big falls and small bounces elsewhere. AUD/USD tested the 0.7000 and held it but could only get back 0.7031 to wrap up a miserable week and a losing streak that's now at 6 days.

USD/CAD rose as high as 1.3418 but could break yesterday's high and drifted back to 1.3380 as we await the Canadian fiscal onslaught.

The EU is trying to put pressure on the UK to move along Brexit negotiations but progress remains painfully slow. There are some minor positive signs so weekend risks might be to the upside; or maybe I've learned nothing from the past two years of squabbling. Cable had some twists and turns but finished flat.

Have a great weekend.

Forex news for North American trade on September 25, 2020:

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Author: Justin Low

Forex news from the European trading session - 25 September 2020

Headlines:

Markets:

  • NZD leads, EUR lags on the day
  • European equities lower; E-minis down ~0.6%
  • US 10-year yields down 0.6 bps to 0.659%
  • Gold down 0.5% to $1,859.10
  • WTI down 1.0% to $39.90
  • Bitcoin flat at $10,642

EOD 25-09
The risk-off mood kicked back into gear in European morning trade today, following a bit of a breather seen yesterday.

There are still jitters involving the recent tech selloff and fleeting optimism surrounding US stimulus talks are both playing a role in driving the market lower today.

European indices started the day more mixed but are now posting near 2% losses while US futures switched from modest gains to losses during the session.

The dollar firmed across the board as a result, trimming losses against commodity currencies from earlier in the day while pushing gains against the euro and pound.

EUR/USD traded around 1.1670 initially but dropped to 1.1630 while GBP/USD fell from a high of 1.2800 to 1.2695 before bouncing a little off the 1.2700 handle once again.

AUD/USD saw early gains erased in a move from 0.7080 to 0.7025 while NZD/USD also trimmed its advance from near 0.6600 to 0.6540-50 levels now.

Elsewhere, gold also eased to $1,850 levels as the dollar firmed while oil is tracking slightly back under $40 ahead of North American trading.

All eyes will turn towards Wall Street to see if these early jitters will turn into something more ugly ahead of the weekend. Another red day will see US stocks poised for a fourth week of decline, with the dollar poised for its best weekly performance since April.

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Forex news for Asia trading Friday 25 September 2020 

There was not a lot to move major FX from news nor data flow during the session. The most impact came from news that China government bonds (CGBs) look set to be included in the FTSE Russell flagship World Government Bond Index (WGBI). The index is made up of mostly developed market bonds and is a major step for CGBs. Chinese government bonds are already included in two other major global indexes, JPMorgan's and Bloomberg's. A couple of points that have been made but may be lost in the celebration:

  • the decision is subject to confirmation in March 2021
  • if approved then the bonds will be phased into the index from October 2021

(see bullets above for more)

Offshore yuan was trading at the time of the announcement, it added to its gains against the USD.

Forex news for Asia tradingFriday 25September 2020 

Otherwise major forex rates traded in limited ranges only and as I update there is little net change. USD/JPY did manage to trade above 105.50 (same as its US high give or take) for a time. Late last week the word was that 105 was the new line in the sand we'd never see again as 'real' rates in Japan were attractive (I posted on my doubts over this a couple of times) and that level did indeed hold into this week. However the move back above 105 came from mid-week and the higher range has consolidated again today, albeit without adding much.

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Forex news for North American trading on September 24, 2020:

Markets:

  • Gold up $5 to $1869
  • S&P 500 up 9 points to 3246
  • US 10-year yields down 1 bps to 0.66%
  • WTI crude oil up 29 cents to $40.22
  • CAD leads, AUD lags
This was one of those days where no one is leaving happy. The back-and-forth in risk sentiment were a trap in every direction and multiple times. Then when you look back at the final tally, nothing moved all that much overall.

Forex news for North American trading on September 24, 2020:
The main move in North American trade in FX was a recovery in commodity currencies, led by the loonie. There was a strong bid in the loonie that might have been exaggerated by oil settlement flows (along with an improvement in oil prices).

Another point worth emphasizing is that when US equities stumbled early, the commodity currencies held up. AUD/USD formed a minor double bottom at 0.7015 and it was off to the races up to 0.7070 with equities following.

EUR/USD was stuck close to 1.1635 for hours but once it broke above 1.1650 to the upside the momentum carried it to 1.1687 at the New York high. It gave some back late as did all dollar trades as equity markets turned a big gain into a flattish day.

EUR/CHF also held a solid bid after the SNB. They're going to be publishing FX intervention data on Sept 30 in a new report and that's going to be one to watch.

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