Forex news from the European morning session – June 4, 2020
- CHF in the lead, AUD late for the day
- European equities down; E-minis down 0.6%
- US 10-year yields remain stable at 0.743%
- Gold up 0.7% to $ 1,712
- WTI down 1.5% to $ 36.70
- Bitcoin down 0.4% to $ 9.548
For once, the actions do not rally to start the day. I know it does happen however.
It looks like the market is taking a bit of a breather after the relentless upward movement since last week, as European stocks continue to slide alongside US futures.
This in turn helps to see the dollar receding some of its trading losses this week.
EUR / USD is down slightly to 1.1200, but the pair is now focusing on the ECB meeting, scheduled in just over half an hour.
Meanwhile, the cable also went from 1.2550 to 1.2500 before rebounding a bit with Brexit titles not too favorable in the European morning.
The Australian has kept about 0.6888-05 levels against dolar for the most part, not doing much in the midst of the lukewarm risk mood on the market today.
All eyes of the market are now turning to the ECB policy decision at 11.45 GMT. The central bank is expected to strengthen stimulus measures by increasing the size of its PEPP – and perhaps its duration – so let’s see if they will deliver on this front later.
Given the slightly softer risk mood, any disappointment could see the withdrawal deepen further in North American trade.