Forex news from the European trading session - 26 June 2020
Headlines:
- Japan records more than 100 new virus cases for the first time since 9 May
- Macron, Merkel will not present a new EU recovery fund proposal next week
- Eurozone May M3 money supply +8.9% vs +8.7% y/y expected
- ECB's Rehn: Recent ECB policy actions were necessary and proportionate
- ECB's Lagarde: Central banks have responded to the crisis in a 'massive' way
- ECB's Lagarde: We probably have passed the lowest point of the crisis
- EU's von der Leyen: We need a stimulus agreement before the summer holidays
- Australia PM Morrison: Coronavirus outbreak in Victoria state is only localised
- US president Trump: Economy is roaring back and will not be shut down
Markets:
- JPY leads, GBP lags on the day
- European equities higher; E-minis flat
- US 10-year yields down 1.5 bps to 0.67%
- Gold flat at $1,764.01
- WTI up 0.4% to $38.90
- Bitcoin down 0.9% to $9,191
It feels like Groundhog Day in European trading today as markets continue to sit more choppy with little headlines of note to shake things up.
There is the inevitable feeling that we will have to deal with pessimistic coronavirus headlines from the US once again, so investors continue to stay on edge for now.
Stocks edged lower in the early stages of the session before recovering higher as we start to look towards North American trading. European equities are holding solid gains just over 1% while US futures pared earlier losses to flat levels currently.
In the currencies space, there wasn't much to really talk about as narrow ranges continue to prevail for the most part with little direction of note.
EUR/USD sits close to flat levels still around 1.1220, with AUD/USD likewise at around 0.6880 levels. The pound is keeping slightly lower under 1.2400 but price action isn't exactly running away as the decline remains rather modest for now.
So, it's all choppy once again in European trading as all eyes turn towards Wall Street and how the risk mood will dictate trading sentiment ahead of the weekend.
