Forexlive European FX News 14 Sep - Vaccine hopes return

Author: Giles Coghlan | Category: News

Positive risk sentiment on vaccine hopes


Other markets

  • FTSE -0.08%
  • Euro Stoxx +0.03%
  • Dax -0.05%
  • CAC +0.20%%
  • Bitcoin 10425+0.88%
  • Gold 1942+ 0.09%
  • US oil -0.19%

The session started with a positive hand over from Asia that translated into a positive  European cash open and strength inUS equity futures. Positive vaccine sentiment from AstraZeneca and Pfizer helped to keep sentiment buoyed though yields were less positive than the early equity moves. The sentiment moderated as the session progressed, but the positive tilt is still there.

Data was scant with Industrial date from the eurozone and latest sight deposit data from the SNB. The deposits showed that their intervention in the CHF has never been better with new highs seen in the sight deposit levels. This does set up a SNB vs ECB scenario ahead of the SNB meeting next week. 


On the Brexit front it is a potentially important day as Johnson's new Internal Markets Bill faces a debate, and then a vote in the House cf Commons. If the Bill is halted either here in the commons, or later in the Lords, then this will be short term GBP relief. However, the GBP is facing a number of risks with large recessionary job losses planned, a shrinking economy, recent spike in COVID-19 cases, and perennial Brexit risks. So, the path of least resistance is down. 

Positive risk sentiment on vaccine hopes

The NZD was the second strongest currency on news from the Asian session that PM's Arden expects the majority of the country to be only in level 1 lockdown from September 21. The GBP was higher on the USD weakness and a little profit taking ahead of the Internal Markets Bill debate due later in the UK parliament. 

Oil markets fell lower during the session awaiting the Opec Monthly report due out at 12:40 BST. 

Ok folks, that's all for now - scheduled back again tomorrow am. 

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