ForexLive European FX news wrap: Dollar gains further, ECB with some jawboning

Forex

Forex news from the European trading session – 3 September 2020

Headlines:

Markets:

  • USD leads, GBP, AUD and NZD lag on the day
  • European equities higher; E-minis down 0.4%
  • US 10-year yields flat at 0.65%
  • Gold down 0.4% to $ 1,935
  • WTI down 2.1% to $ 40.65
  • Bitcoin down 1.4% to $ 11,214

EOD 03-09
It was a session in which the dollar dominated from the get-go, as the ECB followed up with more jawboning of the euro currency ahead of next week’s meeting.

That kept the euro under pressure with EUR/USD slipping from 1.1820 to 1.1789 before holding just above 1.1800 for the time being.

In turn, that is captivating other dollar trades as well with the greenback advancing against the rest of the major currencies bloc during the session.

GBP/USD is still experiencing a gradual fall, reaching near 100 pips today, in a drop from 1.3300 to levels just under its 200-hour moving average near 1.3250 now.

Commodity currencies also kept on the defensive, with AUD/USD slipping from 0.7310 to 0.7280 and USD/CAD rising to test its own 200-hour moving average at 1.3117.

Elsewhere, gold is also pressured lower by 0.4% towards $ 1,930 but some downside support remains closer to $ 1,910-20 before potentially revisiting the $ 1,900 level.

European equities firmed on the back of a weaker euro amid expectations of a more dovish stance by the ECB as well to tame the rising currency.

But US futures are pointing to some downside after a solid run over the past few days, with some anticipation building towards the non-farm payrolls report tomorrow.

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