Forex news from the European trading session – 21 April 2020
- JPY leads, NZD lags on the day
- European equities lower; E-minis down 1.8%
- US 10-year yields down 3 bps to 0.57%
- Gold down 1.2% to $ 1,675.50
- WTI June futures down 20.7% to $ 16.16
- Bitcoin down 0.6% to $ 6,823
The oil market remains a mess right now as we saw WTI June futures plunge sharply during the session after breaching below the $ 20 level.
It was a slippery slope as the decline accelerated to 10% within a half-hour of breaking $ 20 and then by over 40% to a low of $ 11.79 just 20 minutes later.
The plunge exacerbated worries in the market as stocks continue to stay on the defensive, with bonds remaining bid on the session. As a result, the dollar and yen gained strongly.
USD/CAD made its way from 1.4170 to a high of 1.4265 before backing off a little as oil prices come off the lows. But the dollar is maintaining gains for the most part against the rest of the major currencies bloc.
Cable fell from near 1.2400 to a low of 1.2305 as AUD/USD dropped from just under 0.6300 to 0.6269, testing some near-term support at the lows.
Elsewhere, gold is being pressured quite substantially in part due to dollar demand as well as potential liquidation trades perhaps considering the oil market situation.
Gold fell from $ 1,695 to a low of $ 1,659 and is keeping around $ 1,665 to $ 1,675 now.
Looking ahead, risk is going to be a key spot to watch with S&P 500 futures testing waters under 2,800 and also as oil continues to fall out of favour ahead of the rollover later.