The dollar is higher once again going into North American trading
The greenback is trading to fresh highs against the yen, pound, loonie, aussie and kiwi as we start to gear towards the US session later today.

JP Morgan analyst, Malcolm Barr, remarks in a research note to clients
The firm says that it would be a surprise if there was enough progress made to bring about an agreement by the end of October, though chances of a no-deal Brexit materialising is about one third in their view:

Forex news from the European trading session – 2 September 2020
Headlines:
– USD leads, AUD and EUR lag on the day
– European equities higher; E-minis up 0.6%

Comments by China’s Cabinet via state media
– Says will not resort to flood-like stimulus
– Will guide more credit to the real economy
This just reaffirms their current policy stance and that hasn’t changed as they continue to deal with the fallout from the virus outbreak. There are some concerns surrounding domestic credit conditions in China but

Latest data from the Mortgage Bankers Association for the week ending 28 August 2020
–  -6.5%
– Market index 755.1 vs 770.6 prior
– Refinancing index 3,316.2 vs 3,423.0 prior
A slight drop in mortgage applications in the past week with purchases and refinancing activity both seeing weakening a touch, despite the long-term rate falling another 3 bps to 3.08%

The greenback leads gains in the major currencies space
Stocks are up on the day but the dollar is also up as the pullback momentum from yesterday extends into the new trading day today. The dollar held its ground in early European trading but is gradually pushing higher now as we look towards US trading.

Richmond Fed president, Thomas Barkin, remarks in a WSJ interview
– Fed will need to continue to provide significant, sustained support
– Economy faces a slowing labour market recovery
The remarks on the slower recovery aren’t anything new but certainly sets up a renewed focus on labour market data, particularly after Powell’s speech from last week.

The spat between the two countries continues to brew
Again, this just adds to the ongoing economic impact that is slowly being heaped on by China towards Australia and isn’t a positive development for the aussie.

The dollar fails to catch a break so far in European morning trade
But the pace of the decline in the greenback isn’t really extending all too much outside of cable, which is continuing to push towards the 1.3500 handle.

Forex news from the European trading session – 1 September 2020
Headlines:
Markets:
– GBP leads, CHF lags on the day
– European equities higher; E-minis up ~0.3%