Forex News for North American Trade May 21, 2020:
- Gold down from $ 23 to $ 1,725
- WTI crude oil up 50 cents to $ 34.00
- US 10-year rates fall 1 basis point to 0.68%
- British 5-year yields fall into negative territory for the first time
- USD in the lead, CHF late
- S&P 500 down 23 points to 2,948
A recycled report highlighting China’s willingness to respond to U.S. sanctions has weighed on the risk appetite halfway through U.S. trade and spilled over into the FX. This combined with breakthrough failures in EUR / USD, USD / CAD and others to trigger a deeper crisis.
The euro was hit particularly hard as it failed close to 1.10 for the second day, then quickly fell 60 pips. The loone continues to try to break the fork, but some negative talk about housing in Canada and broader risk aversion have denied the move, at least for today.
overall, the movements in FX were relatively modest, as we had some of the usual backfill and trepidation. The market is going to need some kind of catalyst to break up.
Gold fell on reports showing that the Russian central bank bought nothing in April. Almost all of the daily decline occurred early in New York, but managed to rebound $ 8 from lows.