Forex news from the European trading session - 22 July 2020



  • AUD leads, GBP lags on the day
  • European equities lower; E-minis down 0.2%
  • US 10-year yields down 1 bps to 0.59%
  • Gold up 1.0% to $1,860.00
  • WTI down 1.6% to $41.25
  • Bitcoin down 0.4% to $9,342
EOD 22-07

There was a bit of push and pull in the risk mood during the session, with the dollar keeping softer in early trades before news of the US demanding China to close its consulate in Houston put a drag on risk sentiment.

That alongside a Reuters report noting that the PBOC is pausing on easing policy saw stocks retreat and the dollar firmed, though that didn't last too long.

EUR/USD eased from 1.1540 to a low of 1.1507 initially but as the market settled down a little, the euro rallied upon holding support near 1.1500 to rise to its highest levels since October 2018 around 1.1580.

AUD/USD also pushed higher early on to 0.7170 before easing to 0.7112 as risk took a knock, but has now recovered back to 0.7160 levels. Meanwhile, USD/CAD rose from 1.3440 to 1.3480 but is now back down to 1.3430 levels today.

Cable was an exception though as the pound is also weighed lower on more pessimistic Brexit headlines, falling from 1.2720 to 1.2645 and is now close to 1.2700.

Elsewhere, silver and gold are continuing to rally strongly with the former up nearly 5% to $22.34 currently. Gold is up 1% as well to $1,860.

Looking ahead, the US-China theatrics remain a focal point but this is very much still all part of the act in the bigger picture. Things may very well ramp up ahead of the November elections, but it is still rather mild for the time being.

US stimulus talks will also be a key issue in the session ahead, alongside tech earnings that may have an influence on Wall Street sentiment.