Forex news from the European trading session – May 21, 2020
- EUR in the lead, AUD late for the day
- European equities down; E-minis down 0.5%
- US 10-year yields down 0.8 bps to 0.672%
- Gold down 0.7% to $ 1,736.50
- WTI up 1.8% to $ 34.10
- Bitcoin down 2.6% to $ 9,335
Overall, the session was calm as risk tones remained defensive, which helped the dollar strengthen against most of the major currencies of the day.
But a few offers on the euro helped push the single currency higher, the EUR / USD falling from 1.0960 to test again the handle of 1.1000 as yesterday.
The 200-day moving average is close to 1.1015 and will also be a key level to watch.
Elsewhere, everything revolves around the dollar, as we see US futures contracts continue to fall by around 0.5% to 0.7% throughout the session. As a result, European equities are also more subdued, with the DAX still dropping just over 1% at the moment.
This means that the AUD / USD softens around 0.6560-70, with the NZD / USD also trading at 0.6110-20 for the most part during the session.
The pound resumed a small supply of lows a little below 1.2200-1.22250, before reducing these gains to stabilize around the levels of 1.2210-30 as we turn to North American trade .
The big question for Wall Street will be what to do with the last withdrawal here. As the S&P 500 nears its key daily moving averages, it recedes a bit at first glance.
Are American-Chinese tensions and great uncertainty sudden enough to reverse the trend? Or is it all just a break before stocks continue to climb again?