ForexLive European FX news wrap: Euro firms as EU leaders move closer to a compromise

Author: Justin Low | Category: News

Forex news from the European trading session - 20 July 2020

Headlines:

Markets:

  • 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

EOD 20-07
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.

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