ForexLive European FX news wrap: Pound sags as no-deal Brexit fears return
Forex news from the European trading session - 7 September 2020
- Germany says UK must make concessions in Brexit talks
- EU's von der Leyen: I trust the UK to implement the withdrawal agreement
- SNB total sight deposits w.e. 4 September CHF 702.9 bn vs CHF 701.6 bn prior
- China says that US is blatantly bullying Chinese companies
- Eurozone September Sentix investor confidence -8.0 vs -10.5 expected
- UK house prices hit a record high in August - Halifax
- ICYMI: RBNZ continued to tout negative rates possibility over the weekend
- EU's Barnier: I remain concerned about Brexit negotiations
- UK environment secretary on Brexit: We are not moving the goal posts
- Germany July industrial production +1.2% vs +4.5% m/m expected
- State of emergency declared in parts of California due to wildfires
- JPY leads, GBP lags on the day
- European equities higher; E-minis down 0.1%
- Gold down 0.3% to $1,929
- WTI down 1.4% to $39.20
- Bitcoin down 4.8% to $10,095
It was a session dominated by headlines from the UK as fears surrounding a no-deal Brexit returned to start the new week and weighed on the pound.
Cable fell in early Asian trading to 1.3220-30 before the drop resumed in European morning trade as the pair declined as much as 1% to 1.3145 on the session.
Besides that, there is some modest strength in the dollar but nothing too overwhelming with EUR/USD ranging around 1.1820-40 for the most part.
Large option expiries in EUR/USD at 1.1800-10 is also a considerable factor in the limited price action alongside the US holiday later today.
Elsewhere, the loonie is weighed lower as USD/CAD flirts with 1.3100 amid weaker oil prices. Oil dipped below $40 at the end of last week and is staying below that today.
The kiwi is also slightly softer amid some further jawboning by the RBNZ over the weekend, as they issued a press release to reinforce the possibility of negative rates.
Looking ahead, it should be a rather quiet one in North American trading with the US on holiday but just be mindful of extended moves in the pound as we now sit below 1.3200.