Forex news from the European trading session - 10 July 2020
Headlines:
- Hong Kong reports second highest daily local coronavirus case tally
- IEA warns that oil demand recovery is at risk from coronavirus resurgence
- China June M2 money supply +11.1% vs +11.1% y/y expected
- Japan says that Tokyo situation doesn't call for state of emergency declaration
- China says that it will take countermeasures over US sanctions on Xinjiang issue
- Hong Kong confirms that all schools will be closed starting from next week
- Tokyo reportedly finds more than 240 new coronavirus cases in latest update today
- Australia COVID-19 outbreak: 288 new cases today (Melbourne)
Markets:
- JPY leads, CHF lags on the day
- European equities higher; E-minis down 0.2%
- US 10-year yields down 2.8 bps to 0.585%
- Gold up 0.2% to $1,807.60
- WTI down 1.4% to $39.05
- Bitcoin down 0.5% to $9,190
There weren't much notable headlines during the session, besides an update to the virus situation in Tokyo and Hong Kong - which weren't all too positive.
Risk sentiment began on a softer note but proceeded to pare losses, with European equities even turning opening declines to more modest gains at the moment.
US futures were down by nearly 1% but are moving closer to flat levels currently (Nasdaq futures are pretty much there already).
Essentially, it feels more or less like a reset ahead of North American trading.
The dollar pared gains as a result with EUR/USD bouncing from 1.1255 to 1.1300. Meanwhile, AUD/USD also recovered from a low of 0.6924 to 0.6950 levels with NZD/USD firming from 0.6546 to 0.6580 as a result.
The yen kept firmer though with Treasuries seeing more of a bid with USD/JPY slipping from 107.00 to 106.70-80 levels. The loonie is keeping a tad softer, weighed down a little by soggy oil prices ahead of the Canadian jobs report later today.
Looking ahead, risk will be the key driver to watch ahead of the weekend so let's see what Wall Street has to offer after a more choppy week of trading over the last four days.
