Forex news from the European trading session – 27 July 2020
Headlines:
Markets:
- JPY leads, CHF lags on the day
- European equities mixed; E-minis up 0.4%
- US 10-year yields down 1 bps to 0.579%
- Gold up 2.1% to $1,941.40
- WTI up 0.3% to $41.43
- Bitcoin up 6.3% to $10,235
The dollar fallout remains the key theme in the market to start the new week, building on the break at the end of last week where we saw USD/JPY test waters under 106.00.
That push is staying the course today as we see the pair test lows around 105.25 now.
The 105.00 handle will be a key spot to watch in the session ahead and a break below that is likely to precipitate added weakness in the greenback in the near-term.
The Bloomberg dollar index chart suggests the dollar is in a very critical spot right now:
Elsewhere, EUR/USD is looking to keep above 1.1700 despite stretched positioning while cable is pushing the agenda towards 1.2900 and a test of its 200-week moving average.
Stocks are keeping a mixed mood but US futures are a little bit hopeful for a better day to start the week later. Treasury yields continue to keep a little on the edge for now, with plenty of key risk events still to come later in the week.
But for now, it is all about the bruised and battered dollar.