Forex news from the European trading session – May 18, 2020
- AUD in the lead, JPY late for the day
- Higher European stocks; E-minis up 2.0%
- US 10-year yields up 1.3 basis points to 0.656%
- Gold up 1.2% to $ 1,764.12
- WTI up 9.2% to $ 32.15
- Bitcoin up 4.5% to $ 9,653
The market takes a risk-based approach to start the week, with US futures holding around 1% gain early in the morning before doubling at the end of the session.
It can be said that investors are reassured by the message from Fed President Powell that the central bank is determined to do whatever is necessary to secure the economic recovery, but as we move forward In the morning, discussions on vaccines helped to give additional impetus to the risk.
This saw the yen and the dollar lose ground, as commodity currencies benefited greatly from the improved sentiment to restart the week.
The AUD / USD went from 0.6430-40 to 0.6470 while the NZD / USD went from 0.5950 to 0.5985.
The pound also capitalized and recovered some losses, with the cable dropping from around 1.2090-00 to a level close to peaks just above 1.2150 currently.
Elsewhere, oil prices have also captured the attention of a Bloomberg report that demand for Chinese oil is once again in full swing. This helps prices stay steady just above $ 32.
Meanwhile, gold continues its recent technical breakthrough and consolidates its gains around $ 1,760-65 for the most part during the session.
It’s all about risk right now and the market is showing signs of optimism again. The S&P 500 seems ready for a new test of its 61.8 @ 2,934.49 retracement level, so let’s see if the positive momentum can continue today to get there.