Forex news from the European trading session – 1 September 2020
- GBP leads, CHF lags on the day
- European equities higher; E-minis up ~0.3%
- US 10-year yields up 1.3 bps to 0.718%
- Gold up 1.1% to $ 1,990.20
- WTI up 1.2% to $ 43.14
- Bitcoin up 1.9% to $ 11,907
The session began with more of the same from yesterday, as the dollar languishes and kept that way throughout. But the greenback got some company from the franc – and the yen to some extent – as markets continue to look cheery to start September.
Equities continued to push forward with gains and US futures – Nasdaq especially – continue to look perky following a spectacular August month of trading.
That kept pressure on the dollar with EUR/USD hovering around 1.1970-90 for the most part, despite euro area inflation data seeing a significant downside miss.
Meanwhile, cable is pushing gains on the day to over 100 pips to 1.3470-80 levels.
USD/CHF tracked to 0.9000 early on but reversed course in a move to 0.9050. USD/JPY also moved off earlier lows of 105.60 to 105.80 levels currently.
Commodity currencies kept their advance against the dollar with USD/CAD seen down to 1.3000 while AUD/USD is testing two-year highs close to 0.7400.
In general, the market is picking up from where it left off in August and the dollar is once again approaching key technical crossroads. After five consecutive months of decline – longest streak since 2017 – will it be more of the same for the dollar in September?
The signs are certainly compelling to say the least.