ForexLive European FX news wrap: Dollar firms ahead of NFP report
Forex news from the European trading session - 7 August 2020
- China top diplomat calls for US to create favourable conditions for implementation of Phase One trade deal
- BOE's Ramsden: We are not actively planning for negative rates
- China says TikTok, WeChat are in compliant with US laws and international regulations
- Tokyo reports 462 new coronavirus cases in latest update today
- Germany reports 1,147 new coronavirus cases in latest update today
- US official: Trump order relates to WeChat, not other Tencent transactions
- USD leads, NZD lags on the day
- European equities mixed; E-minis down 0.4%
- US 10-year yields down 0.5 bps to 0.531%
- Gold down 0.4% to $2,055.10
- WTI down 1.3% to $41.40
- Bitcoin down 0.7% to $11,769
It is all about the countdown to the US jobs report, with US-China tensions weighing on risk sentiment so far on the day. This follows Trump's decision to sign executive orders against ByteDance and Tencent earlier in Asia Pacific trading.
That saw stocks fall and the dollar kept firmer across the board, with the same mood persisting throughout European morning trade for the most part.
EUR/USD eased from 1.1840 to 1.1810 and is keeping just above that for now as sellers test the 100-hour moving average. Meanwhile, cable slipped from 1.3110 to a low of 1.3073 and is hovering just above that on a break under its own 100-hour moving average.
The greenback held firmer against the commodity currencies as well, with AUD/USD resting lower around 0.7200-15 for the most part during the session.
Elsewhere, gold and silver stayed on the retreat as the dollar firmed with gold keeping around $2,050 levels and silver hovering around $28.00-20 for now.
All eyes are on the NFP report now with the market also keeping a close watch on Congress as to whether or not there will be any stimulus progress ahead of the weekend.