ForexLive European FX news wrap: Pound sags as no-deal Brexit fears return

Author: Justin Low | Category: News

Forex news from the European trading session - 7 September 2020

Headlines:

Markets:

  • 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

EOD 07-09
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.

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