Forex news from the European trading session - 10 September 2020
Headlines:
- UK government says that internal market bill will be debated on 14 September
- ByteDance is likely to miss US deadline for TikTok sale - report
- BOJ expected to offer a more upbeat take on the economy next week - report
- AstraZeneca CEO says that coronavirus vaccine is still possible by year-end
- EU reportedly could trigger legal case against UK if talks today do not provide reassurance
- Irish PM Martin: I'm not optimistic about striking a Brexit deal at this stage
- China plans strategic boost to vast state commodities reserves - report
Markets:
- CHF leads, AUD lags on the day
- European equities slightly lower; E-minis down 0.5%
- US 10-year yields flat at 0.70%
- Gold up 0.1% to $1,949.50
- WTI down 1.4% to $37.51
- Bitcoin up 0.4% to $10,302
The market observed more calm in European morning trade with one eye on the ECB and the other awaiting the follow up from Wall Street after a bounce yesterday.
The risk mood was more cautious early on and US futures are keeping a little lower as we look towards North American trading now, putting a drag on European stocks as well.
In the currencies space, there weren't much notable action with the pound keeping more resilient today despite continued Brexit concerns.
Cable stuck around 1.2990-20 for the most part as the EU and UK are set to meet later today to discuss on the internal market bill and how to move forward.
The euro is keeping a little higher around 1.1820-40 ahead of the ECB meeting but is still trapped between key near-term levels, so it isn't indicative of much.
Meanwhile, commodity currencies are also trading more narrowly with the aussie and kiwi a little lower but AUD/USD is settling in a 24 pips range so far today.
All eyes are on the ECB next at 1145 GMT before we get to digesting the risk mood once again when US markets open later in the day.
