Forex news for New York trade on June 12, 2020:
- Gold up $ 3 to $ 1730
- WTI crude oil up 22-cents to $ 36.56
- S&P 500 up 39 points to 3041
- US 10-year yields up 3 bps to 0.70%
- CAD leads, CHF lags
The US dollar continue the retracement against the euro and pound as the week wound down. Both EUR/USD and GBP/USD were higher in early European trade but fell particularly hard in North American trade to finish a half-cent lower.
The weakness was underscored by a weakening backdrop in equities. What started out as a big bounce slowly faded into a 1% loss. However after flushing out stops below 3000 and the 200-dma, the S&P 500 bounced late. EUR and GBP didn’t get a big lift but finished well above the lows.
The commodity currencies were dragged around by the risk trade as well. AUD/USD started NY trade near 0.69 but fell as low as 0.6813, which was just above the Asian low. Bids there sparked a 35 pip rebound. The loonie and kiwi followed the same paht.
USD/JPY climbed a half-cent on the day as US Treasury yields bounced. Even as equity markets sagged, the pair held a decent bid. That could be seen as a good sign but it came after four days of solid selling.
The plunge Thursday was somewhat cathartic for an extremely emotional market in an uncertain time. The volatility today helped to establish a modest foundation but it will be touch-and-go for awhile.
Have a great weekend!