FX MARKET REPORT 18.09.2020

FX MARKET REPORT 18.09.2020

FX MARKET REPORT 18.09.2020

Daily Commentary
Daily Commentary
FX MARKET REPORT 18.09.2020
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FX MARKET REPORT 18.09.2020

GBP/USD has been rising amid fresh Brexit hopes and despite the Bank of England’s dovish shift. On Friday, speculation about a new UK lockdown and data on both sides of the pond are eyed, the pair is trying hard to extend the recovery, attacking the psychological 1.30 mark. EUR/USD to surge towards 1.20 on a break above 1.1880. Dollar Index was down 0.2% at 92.823 while USD/JPY was largely flat at 104.70, but still on course for a gain of 1.5% over the week. In other markets, DAX in Germany traded flat, the CAC 40 in France fell 0.1% and the U.K.’s FTSE index was down 0.3%. Covestro (DE:1COV) stock soared 6.7% after Bloomberg reported that buyout firm Apollo Global Management (NYSE:APO) is weighing up the acquisition of the plastics manufacturer. Bayer (DE:BAYGN), which holds a 7.5% stake in Covestro, also outperformed, rising 0.3%. Caixabank (MC:CABK) gained 0.8% after its acquisition of state-owned lender Bankia (MC:BKIA), down 2%, was approved by both boards, potentially creating Spain’s biggest domestic bank. That comes as their two biggest rivals, Banco Santander (MC:SAN) and BBVA (MC:BBVA), both plumb 52-week lows. Additionally, the London Stock Exchange (LON:LSE) rose 0.6% after it revealed it had entered into exclusive discussions with Euronext (PA:ENX), which gained 4.2%, in relation to the sale of the Borsa Italiana group. Man Group (LON:EMG) rose 0.7% after saying it will start a new share-buyback program of up to $100 million. U.S. crude futures traded 1.2% higher at $41.47 a barrel, while the international benchmark Brent contract rose 1.1% to $43.78. Both benchmarks have seen gains of over 9% this week, the first positive week in three. Gold futures rose 0.6% to $1,962.35/oz.  

GBP/USD has been rising amid fresh Brexit hopes and despite the Bank of England’s dovish shift. On Friday, speculation about a new UK lockdown and data on both sides of the pond are eyed, the pair is trying hard to extend the recovery, attacking the psychological 1.30 mark. EUR/USD to surge towards 1.20 on a…

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