Forex news for North American trade on October 16, 2020:
Markets:
– Gold down $9 to $1899
– US 10-year yields up 1.3 bps to 0.745%
– S&P 500 flat at 3483
There were some big headlines on Brexit and US retail sales today but the market was lackluster. The retail sales report led to a quick bid in USD/JPY

Moody’s cuts the United Kingdom
This isn’t entirely unexpected but you hate to see it. Fitch recently affirmed the UK at AA-, which is the equivalent of Aa3. S&P remains one notch higher at AA but it’s under review.

Weekly FX positioning data for the week ending October 13, 2020:
The euro net has fallen from a record as concern grows about the coronavirus resurgence in Europe.

Closing changes for Friday:
On the week:
If you like doji stars just below the highs, then that S&P 500 chart is for you.

Citi flags asymmetric risk/reward in CHF this month
Citi flags a scope for Switzerland to be named a currency manipulator by the US  by US Treasury in October. 

EU president, von der Leyen, offers her response to Boris Johnson
The EU continues to work for a deal, but not at any price.

As planned, our negotiation team will go to London next week to intensify these negotiations.
Well, it seems like this is all turning out to be another round of Brexit posturing.

Bloomberg reports, citing an EU official on the matter
Just be mindful of the situation as there is still the possibility that despite what Johnson is saying about preparing for a no-deal Brexit.

Bloomberg reports, citing an official familiar with the talks
Adding that the EU expects Brexit negotiations with the UK next week to continue as planned, as they do not view that Johnson’s message is one that says the UK is walking away from negotiations at this point in time.

GBP/USD falls by about 100 pips before settling closer to 1.2900 now
Cable was treading close to its 200-hour MA (blue line) earlier @ 1.2960 before UK PM Johnson offered a surprise response to the EU summit yesterday in calling for preparations of a no-deal Brexit by January next year.

Reuters reports, citing sources familiar with the matter
That said, the fact he said earlier that does suggest that the door is still open for further Brexit talks to take place before 31 December.