Forex news from the European trading session – 11 June 2020
- JPY leads, AUD lags on the day
- European equities lower; E-minis down 2.1%
- US 10-year yields down 2.8 bps to 0.698%
- Gold down 0.6% to $ 1,727.63
- WTI down 4.2% to $ 37.95
- Bitcoin down 0.9% to $ 9,778
The market is having a bit of a post-Fed hangover today as risk trades retreat further while the dollar is keeping firmer across the board as a result.
European stocks opened lower and kept with the losses as S&P 500 futures extended declines to over 2% during the session amid the risk-off mood.
Elsewhere, Treasury yields are staying pressured as we see longer-term yields fall back into its previous range since April trading. 10-year yields are down just under 0.70% now.
In the currencies space, the dollar and yen firmed as a result. The greenback did pare some of its stronger gains in mid-morning trade but is seen firmer again currently.
EUR/USD rose from a low of 1.1325 to 1.1390 before retreating again towards 1.1350-60 levels. USD/JPY also declined from 107.15 to 106.80 before climbing back up a little.
AUD/USD is keeping at the lows now with the decline closing in on the 0.6900 level after a slight recovery to 0.6950 briefly during the session.
Cable also moved up from 1.2650 to 1.2715 but is now seen trading closer to the lows for the day again as the dollar firms ahead of North American trading.
All eyes are on what this pullback/correction would mean in the bigger picture as one can argue that it is overdue after the run higher over the past few weeks.