Forex news for North American trading on May 20, 2020:
- Gold up from $ 4 to $ 1,749
- S&P 500 up 46 points to 2,969
- US 10-year rates fall 1 basis point to 0.68%
- Gross WTI up from $ 1.63 to $ 33.59
- NZD leading, GBP late
The US dollar was under pressure for much of the day, including a decline against the yen despite the improved risk appetite early in the day.
One of the headlines that hurt the market was the decision of US senators to unanimously pass a bill that makes it difficult for Chinese companies to stay listed in the United States. It also hurt the U.S. dollar, as well as the spiral of the war of words between the U.S. and China.
The other headline that was a factor is the BOE Bailey who talks about negative rates again. Officials raised the idea several times while warning that it was just an idea, but the central bank could back off into a corner. Cable had flown high before the comments, but is 50 pips from the peaks and near a low session.
On the technical side, the most notable movement was the AUD / USD rising above the May and April peaks to reach the best levels in two months. This breaks a double high and is a good sign for the broader risk trade, or at least the idea that Australia can sail with few cases.
Broader confirmation of the positive sentiment would be a breakdown in USD / CAD and this pair is close as it sank 50 pips to 1.3868 low before bouncing 30 pips from Chinese headlines.