Forex news from the European trading session – May 13, 2020
- AUD in the lead, NZD late on the day
- European equities down; E-minis up 0.6%
- US 10-year yields remain unchanged at 0.664%
- Gold up 0.3% to $ 1,708.35
- WTI up 0.5% to $ 25.92
- Bitcoin up 2.0% to $ 9,000
This session was dominated by headlines from governments as easing restrictions on coronaviruses occupy a central place in Europe.
The stocks were encouraging but did little to motivate the market, as it is rather a mid-term rally in American futures contracts that moves the main currencies.
The dollar is weaker across the board, with most of the weakness coming around noon in Europe, with US futures moving from stable levels to gains of around 0.6% now.
The AUD / USD climbed from 0.6470 to 0.6520 during the session, while the EUR / USD recovered from its low at 1.0831 to rise to 1.0870.
Meanwhile, cable also rose after the UK data deluge to 1.2300 before dropping to 1.2270. But as the dollar depreciates, it pushes the pair up to new highs at around 1.2330 currently.
The kiwi remains weaker after the RBNZ almost doubled QE and reaffirmed that negative rates are still an option. But the NZD / USD fell from 0.6000 to 0.6050 over the session.
European stocks continue to catch up on the late fading of US stocks overnight, which belies the current sentiment in the market.
All eyes will turn to Fed President Powell later today, but it will be interesting to see how the mood for risk plays out with early equilibrium US stocks after a tough time yesterday.