ForexLive European FX news wrap: Euro firms as EU leaders move closer to a compromise
Forex news from the European trading session - 20 July 2020
- EU's von der Leyen: Things are moving in the right direction on a deal
- GOP leaders said to meet at White House later today to discuss next coronavirus bill
- ECB's de Guindos: Q2 GDP drop to be slightly better than expected
- SNB total sight deposits w.e. 17 July CHF 691.5 bn vs CHF 688.6 bn prior
- Germany June PPI 0.0% vs +0.2% m/m expected
- EU hardliners reportedly ready to accept €390 billion in grants on recovery fund
- Tokyo finds 168 new coronavirus cases in latest update today
- Dutch PM Rutte: We are making progress
- European leaders to resume talks again later at 1400 GMT - EU spokesman
- GBP leads, JPY lags on the day
- European equities mixed; E-minis down 0.2%
- US 10-year yields down 0.8 bps to 0.618%
- Gold up 0.1% to $1,812.85
- WTI down 0.8% to $40.25
- Bitcoin flat at $9,162
The focus on the session was on the happenings in Brussels, as EU negotiations on the recovery fund stretched into a fourth straight day but moving closer to a compromise.
Hopes of such a positive outcome bolstered the euro, with EUR/USD rising from 1.1430 to fresh highs since March of 1.1468. This comes as the "frugals" are reported to give in after grandstanding on the decision over the past few days.
Risk sentiment was rather choppy during the session, with the mood being more sluggish initially before improving and then keeping more tepid currently.
The dollar relinquished its early gains and keeps slightly softer for the most part now.
Cable was a notable mover as the pound recovered strongly with buyers taking back near-term control on a push from 1.2540 to 1.2620. Resistance around 1.2650-70 will be the next key spot to watch for the pair.
Meanwhile, AUD/USD also pared slight losses from 0.6980 to 0.7000 as the dollar moved a little lower during the session.
All eyes are staying on Brussels for now with EU leaders set to reconvene at 1400 GMT.