Forex news from the European trading session - 5 August 2020
Headlines:
- Trump reiterates 'big' jobs number coming on Friday
- Scotland imposes new restrictions in Aberdeen amid local virus outbreak
- US MBA mortgage applications w.e. 31 July -5.1% vs -0.8% prior
- Japan economy minister: The second major coronavirus wave has arrived
- UK July final services PMI 56.5 vs 56.6 prelim
- Eurozone July final services PMI 54.7 vs 55.1 prelim
- Germany July final services PMI 55.6 vs 56.7 prelim
- France July final services PMI 57.3 vs 57.8 prelim
- Tokyo reportedly finds 263 new coronavirus cases in latest update today
- Japan's Aichi prefecture to declare its own state of emergency - report
- RBA says it bought A$500 million of 3-year government bonds in operations today
- S&P places Australian state of Victoria on negative ratings watch
Markets:
- AUD leads, USD and JPY lag
- European equities higher; E-minis up 0.6%
- US 10-year yields up 2 bps to 0.528%
- Gold up 1.2% to $2,044.07
- WTI up 3.9% to $43.34
- Bitcoin up 1.9% to $11,425
There weren't much notable headlines as the market stuck with theme from North American trading yesterday, where gold rallied and the dollar faltered.
Gold extended gains by a little over 1% in a push to fresh highs above $2,040 while silver is advancing by more than 3% and moving closer towards $27.
Risk trades also fared much better as European indices are putting in a solid shift so far alongside US futures, which are up by ~0.6% currently.
As such, the dollar is seen on the decline with EUR/USD pushing higher from 1.1810 to 1.1860 while GBP/USD saw some back and forth - moving up to 1.3120 before falling to 1.3060 - but is ultimately settling higher at around 1.3130-40 levels now.
Meanwhile, AUD/USD is also extending gains above 0.7200 in a push from 0.7180-90 to 0.7220 while USD/CAD is easing further on stronger oil prices as well in a fall from 1.3300 to 1.3240 levels currently - lowest levels since February.
It is all about the strength in gold and weakness in the dollar at the moment, with risk trades also taking comfort in the whole situation - cheered on by Trump and his 'big' jobs number coming up later this Friday.
