Forex news from the European trading session – 3 June 2020
- EUR leads, AUD lags on the day
- European equities higher; E-minis up 0.4%
- US 10-year yields up 0.8 bps to 0.693%
- Gold down 0.4% to $ 1,720.66
- WTI down 1.6% to $ 36.20
- Bitcoin up 0.9% to $ 9,608
Stocks continue to push higher on the week with European equities building on the positive momentum from Asia, and US futures are also modestly higher on the session.
But in the currencies space, there has been a bit of a pullback in the dollar rout as we see the greenback trade more mixed across the board going into North American trading.
Notably, AUD/USD pared gains amid an earlier rejection around 0.6983 to 0.6940 before falling off further to 0.6857 in European morning trade.
GBP/USD also eased a little from 1.2600 to 1.2560-70 levels seen currently as the dollar recouped some of the selloff from yesterday. EUR/USD is also resting closer to 1.1200 after having hit fresh highs since 16 March of around 1.1228.
There wasn’t much headlines pertaining to risk but oil was an interesting spot to watch amid reports that the OPEC+ meeting tomorrow is now in jeopardy.
Compliance to the output cuts deal is the main issue and that is prompting Saudi Arabia and Russia to threaten other members to play ball before agreeing to an extension.
As such, oil fell off from around $ 37.40 to lows just under $ 36.00 before settling around $ 36.20 as we look towards the session ahead.
Despite the pullback in currencies, the risk rally marches on with European equities posting solid gains throughout the session and that sets up another feel-good vibe for Wall St later.