US and Canada close for public holidays
UK/EU Brexit talks face further hurdles as deadline nears
DXY closes above 93.00 giving the dollar a further boost
With the US and Canada markets closed for public holidays there wasn’t too much to drive price with most of the day’s headlines centring around the UK/EU Brexit negotiations. Cable falling 1% on the day was the biggest mover, EUR also drifted off and USD/JPY gained a few pips but most other pairs were unchanged from Fridays NY close but pushing the DXY back over 93.00. During the Asia session we had a look at Chinese trade data with exports a beat but imports sagging as global demand remains subdued due to the virus. Either way stocks were unmoved although US indices futures have rebounded a little from Fridays sell off. Gold did have one move up on the Asian open flirting with a retest of 1950 before falling back to 1925/1930 for most of the day. News that Spain is seeing a surge in coronavirus should come as no surprise given the relaxation of restrictions and ‘free travel’ from overseas visitors during the summer holidays. Now over 500K cases it is by far the largest in Europe. For the day ahead we will see a dump of data from Japan that will be ignored as usual along with NAB business confidence also largely ignored before trade and GDP data for Europe. Overall a quiet day expected with North America returning all eyes will be on stocks and if we see a continuation of the recent correctional sell off or buy the dip is in full flow for moves back higher.