Forex news from the European trading session – 14 May 2020
- USD leads, AUD lags on the day
- European equities lower, down over 2%; E-minis down 0.5%
- US 10-year yields down 3 bps to 0.622%
- Gold flat at $ 1,716.85
- WTI up 3.2% to $ 26.10
- Bitcoin up 4.3% to $ 9,701
The risk mood in the market stayed softer for the most part in European trading, following a sluggish past couple of sessions on the week.
There wasn’t much notable headlines early on to shift the dial, but things picked up towards the end as US president Trump gave an interview with Fox News.
He brought up tensions with China and marked an end to globalisation, but notably made a 180° turn on dollar policy – saying “it is a great time to have a strong dollar”.
The greenback was already keeping a little higher on the day and traded more choppily during the session, but gained across the board on the remarks by Trump.
EUR/USD fell from 1.0810 to 1.0775 while AUD/USD fell from 0.6450 to 0.6410-20 levels, with cable also easing from 1.2220 to just under the 1.2200 handle currently.
USD/JPY also nudged a little higher from 106.80 to 107.10 during the session.
Amid Trump’s comments on the end of globalisation, stocks are seeing another wave lower on the day after a bit more of a choppy but softer session in European morning trade.
Looking ahead, it is going to be a test of dip buyers’ resolve and if they fail to put up a strong showing today, this may very well be starting to turn into the beginnings of a more protracted move lower for risk trades in the coming sessions.