FX MARKET REPORT 21.09.2020

FX MARKET REPORT 21.09.2020

FX MARKET REPORT 21.09.2020

Daily Commentary
Daily Commentary
FX MARKET REPORT 21.09.2020
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FX MARKET REPORT 21.09.2020

GBP traded sideways between 1.2914 and 1.2999. The underlying tone has weakened and from here, GBP could drift lower to 1.2875 (minor support is at 1.2900). Rishi Sunak, the Chancellor of the Exchequer, has yet to announce what would replace – if at all – the furlough scheme which expires next month. The specter of mass UK layoffs is worrying about the nation and markets. A gradual tapering of the scheme is likely, but without details, sterling could suffer. EUR traded in a relatively quiet manner between 1.1825 and 1.1870 before settling a tad lower at 1.1837 (-0.08%). Momentum indicators are turning neutral and EUR could continue to trade in a quiet manner, expected to be between 1.1820 and 1.1885. Dollar Index was down 0.1% at 92.862. USD/JPY was down 0.2% at 104.34. In other markets, DAX futures contract in Germany traded 0.6% lower, CAC 40 futures in France dropped 2%, while the FTSE 100 futures contract in the U.K. fell 0.7%. HSBC (LON:HSBA) is likely to be in the spotlight Monday after slumping in Asian trading, with its shares falling to the lowest level since 1995. HSBC, along with Standard Chartered (OTC:SCBFF), is one of the banks accused of moving large sums of allegedly illicit funds over nearly two decades by the Financial Crimes Enforcement Network. AstraZeneca (NYSE:AZN) will also be in focus after the pharma giant said on Saturday that its Covid-19 vaccine trial in the United States was still on hold, after a safety event was reported in its U.K. trial two weeks ago.  Oil prices edged lower Monday despite another weather pattern emerging to threaten output in the Gulf of Mexico. In what has been an active hurricane season, Tropical Storm Beta has prompted some oil producers to evacuate offshore platforms in the region, just as they had been restarting their operations in the wake of Hurricane Sally. U.S. crude futures traded 0.6% lower at $41.09 a barrel, while the international benchmark Brent contract fell 0.75% to $42.92. Gold futures fell 0.3% to $1,956.95/oz.  

GBP traded sideways between 1.2914 and 1.2999. The underlying tone has weakened and from here, GBP could drift lower to 1.2875 (minor support is at 1.2900). Rishi Sunak, the Chancellor of the Exchequer, has yet to announce what would replace – if at all – the furlough scheme which expires next month. The specter of…

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