ForexLive Asia FX news wrap: EUR slump on France, Germany lockdown fears
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Forex news for Asia trading
for Wednesday 28
October 2020
The euro had been weak in the
US afternoon after a
limited range session. The slump for the currency accelerated late in
the US day, with NZ FX markets trading but little else. The move was
prompted by reports that France was considering
a month-long lockdown as a circuit breaker for the accelerating
COVID-19 outbreak across the nation. French President Macron is
scheduled to address the nation at 1900GMT Wednesday and we should
learn more then. A few
minutes after the
French news hit came talk that Germany was considering something
similar,
reports varying from a 2 weeks
to 4+
weeks of
lockdown. Again,
nothing was or has since been officially announced. Something else to
bear in mind, the new lockdown restrictions may well not be as harsh
as the lockdown initially earlier in the year (ps. Melbourne
Australia readers will rightfully disagree, Australia’s second
largest city is just emerging from lockdown 2, which was much more
restrictive than lockdown 1).
EUR/USD
dropped to lows circa 1.1770 before stabilising. AUD, NZD, CAD, yen
and CHF all fell alongside, to greater or lesser extents. GBP got a
bit of a triple whammy with a Brexit-related headline crossing (EU –
UK talks ‘most difficult’ according to an EU official, see
bullets above for more).
On
the data agenda today it was Q3 inflation from Australia – the
results provided little to change the consensus view that further
easing efforts are coming from the Reserve Bank of Australia at their
policy meeting on November 3.
Bitcoin headed to its highest since January 2018:
