Here is what you need to know on Friday, September 20th:
- The Bank of England had a monetary policy meeting, but kept its monetary policy unchanged, waiting for some Brexit clarity.
- EUR/USD traded within familiar levels, unable to find a clear direction Deteriorating market sentiment on trade war-related news weighed it lower at the end of the day.
- Trump’s adviser on China, Michael Pillsbury, said that President Trump could escalate the trade war if a deal is not reached soon. Sentiment deteriorated in the American afternoon with Wall Street trimming early gains.
- During the US afternoon, EU’s Juncker said that if the objectives of the backstop are met through alternative arrangements, the backstop won´t be needed, adding that there could be a deal by the October deadline. The GBP/USD pair soared on the news to fresh multi-week highs.
- The Japanese yen strengthened after the BOJ left its monetary policy unchanged, hinted action in October. US Treasury yields edged lower.
- Crude oil prices pared their two-day decline but were unable to sustain early gains.