Small sign that the White House doesn’t want to go big
There’s a risk that some Republican Senators start to try to reclaim some high ground on fiscal discipline. If they feel Trump isn’t going to win in November, they may want to pivot back to ‚fiscal conservatism‘ now rather than vote for another big stimulus

This is likely to hash out their positions ahead of the summit on 17-18 July

The risk mood is more mixed in European trading thus far
It is still going to be all about risk as we look towards the weekend, with US futures keeping lower ahead of North American trading, but are off earlier lows at least.

Forex news from the European trading session – 10 July 2020
Headlines:
Markets:
– JPY leads, CHF lags on the day
– European equities higher; E-minis down 0.2%

IMF gives the thumbs up for governments to pile on the debt levels
– Cutting spending too early could derail economic recovery
They’re definitely not wrong in that sense but it also reaffirms the more or less global narrative that fiscal conservatism is dead. As much as the world would like to go back to thinking that

USD/JPY pressured to session lows of 107.73 on the day
The move in yields isn’t quite breaking the range seen since April with lows around 0.539% to 0.566% a key region to watch in that regard.

Comments by WHO chief, Tedros Adhanom
Anyway, it is funny when you think about what has transpired over the past few months in some countries which are proving to be virus hotspots now.

Forex news from the European trading session – 9 July 2020
Headlines:
Markets:
– GBP leads, JPY lags on the day
– European equities mixed; E-minis up 0.1%
– US 10-year yields down 1.3 bps to 0.651%

Hong Kong tightens some restrictions amid the rise in virus cases
– Announces tightening of social distancing measures
– To limit restaurant party size to 8 persons per table
This relates to the news . Risk sentiment remains unfazed for the most part despite today’s developments from Tokyo and Hong Kong. US futures are still seen holding closer

The pound is continuing its good form on the week
The pound initially shrugged off UK finance minister Sunak’s new announcements to bolster the economy yesterday but they remain part of the more supportive factors in the background, despite some skepticism still abound surrounding the UK economy.