Forex news from the European trading session – 24 September 2020
- GBP leads, NZD lags on the day
- European equities mixed; E-minis down 0.1%
- US 10-year yields flat at 0.67%
- Gold down 0.3% to $ 1,858.70
- WTI up 0.2% to $ 40.01
- Bitcoin up 1.8% to $ 10,402
As the furlough scheme is set to expire in October, UK finance minister, Rishi Sunak, unveiled fresh plans to prevent a cliff-edge risk in the jobs market today.
The pound gained ahead of the announcement, with cable bouncing from 1.2700 to 1.2780 in European morning trade before easing back around 1.2730-50 thereafter.
The dollar kept steady for the most part despite some indecision in the risk mood during the session. European indices began the day lower but have mostly pared losses alongside US futures as we look towards North American trading now.
EUR/USD kept softer around 1.1640-50 for the most part, but the dollar’s advance is more evident against the commodity currencies bloc – aussie and kiwi in particular.
AUD/USD kept lower around 0.7030-50 while NZD/USD is gradually making fresh lows on the session, slipping from 0.6535 to a low of 0.6517.
Elsewhere, gold eased to fresh two-month lows of $ 1,848.88 but is keeping just above its 100-day moving average for now before trimming losses slightly.
All eyes will stay on the dollar and equities, with another round of US initial weekly jobless claims and the final day of Fed chair Powell’s testimony to get through.