Forexlive European FX News 10 Aug - USD main mover on the session
Large option at 1.1800 lets EURUSD slide
- This is what gold fever looks like
- As real yields fall, gold goes up
- Global holdings for gold ETF's now surpass Germany's reserves
- Some physical UK consumer confidence returning
- Core 10 year bond yields remaining supported post NFP bounce.
- Dollar Index capped by 1hr descending trend line for now.
- Dollar strength from Friday remains. Retracement due?
- EURUSD touches 1.1800 and pulls away
- Trade ideas thread - European session 10 August 2020
- Large options at 1.1800 on the EURUSD (call option bias)
- One third of British employers seeking job cuts in Q3
- USD caught in a narrow range post the executive orders and good jobs on Friday
- Post-links Paragraph Text Here, don't forget an image.
- FTSE100: 6053 +0.36%
- DAX: 12695 +0.18%
- DXY: 93.66 + 0.28%
- GOLD: 2031 -0.03%
The session started quietly as a holiday induced lull from the overnight Asian session flowed through into the European morning session. The market started off broadly risk on as future markets stay gently bid, the VIX was pressured lower, oil and copper found bids and major 10Y and yields rose too.
It was a quiet day too in terms of scheduled data releases with a couple of low tier releases from Switzerland and Europe. The Swiss data point was as expected and nothing exceptional to note
The USD was the only really mover in a very quiet session. This dollar move was helped by the EURUSD having a large $3 bln vanilla option rolling off at the 1.1800 level. It had an 85% vs 15% call to put bias. An early touch of this level saw the EURUSD pull away from 1.1800 as traders were eager to keep those call options traders out of the money.The Dollar Index was capped by a 1hr descending trend line and that kept the DXY subdued for the most part of the session until the last hour or so which saw price make a break above which opens up 94.00.
In terms of geopolitical news there was the odd bubble of trouble from China and the US regarding more fallout from the Hong Kong extradition bill. Nothing surprisig, but a reminder ahead of the US-China trade talks this week on August 15 that tensions are high.
All in all a quiet session aside from modest USD moves.
Justin will return for normal service tomorrow. Been a pleasure as always.