FX MARKET REPORT 10.09.2020

FX MARKET REPORT 10.09.2020

FX MARKET REPORT 10.09.2020

Daily Commentary
Daily Commentary
FX MARKET REPORT 10.09.2020
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FX MARKET REPORT 10.09.2020

Sterling continues to weaken this week as market participants move quickly to price in more of a Brexit risk premium. The pound has weakened sharply in recent days resulting in EUR/GBP rising back towards the 0.9100-level and GBP/USD towards the 1.3000-level. Ireland’s PM Martin said that ‘where there is a will there is a way’ when questioned about the Brexit deal. EUR/USD rises 0.24% to trade at 1.1830, buoyed by the ECB’s economic optimism and broad dollar weakness. Dollar Index was down 0.2% at 93.090, with USD/JPY pair inched down 0.06% to 106.11. In other markets, DAX futures contract in Germany traded 0.3% higher, CAC 40 futures in France climbed 0.4%, while the FTSE 100 futures contract in the U.K. underperformed, falling 0.2%. Overnight in the U.S., the tech-heavy Nasdaq Composite index posted its steepest rise in more than four months, gaining 2.7%, to halt a three-session slump that had cast doubt over the valuations of the mega cap tech stocks which had driven the market’s strong recovery. The Dow Jones Industrial Average rose 1.6% and the S&P 500 climbed 2%, in conjunction. Oil prices slipped back Thursday, as a rise in U.S. crude inventories prompted concerns about faltering demand just as the peak driving season comes to an end. U.S. crude futures traded 0.2% lower at $37.97 a barrel, while the international benchmark Brent contract fell 0.1% to $40.75. Gold futures rose 0.1% to $1,956.70/oz. 

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Sterling continues to weaken this week as market participants move quickly to price in more of a Brexit risk premium. The pound has weakened sharply in recent days resulting in EUR/GBP rising back towards the 0.9100-level and GBP/USD towards the 1.3000-level. Ireland’s PM Martin said that ‘where there is a will there is a way’…

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