Session Wraps - Major Forex Headlines wrapped up by trading session

Forex news for Asia trading Friday 3 April 2020 

There was plenty of follow-up news on the major market-impacting news during the Thursday US session. US President Trump doubled down on his assertion that Russia and Saudi Arabia would cut production by at least 10 million barrels, even by as much as 15 million - oil did not have the same historic price move up it had during the us session but nevertheless it moved higher (before drifting back to retrace the move).

The other huge item of note from the uS, the even more historic move higher in jobless claims garnered attrition here with plenty speculating next week could be a blockbuster number again; the failure of overwhelmed unemployment registration systems in the US is likely to see another huge claims number (note, keep an eye on continuing claims from next week also).

Also, but more stock market related, CAR (the largest car rental company in China) shares in HK dropped more than 50%. Company chair Lu Zhengyao is also chairman of Luckin Coffee, whose shares collapsed more than 80% during the US session with allegations of fabricated sales data. As I post CAR trade has been halted.

Despite all that, forex was, relatively, sedate. Ranges were reasonable for an Asian session but small compared to what we have seen in recent weeks. USD/JPY traded back above 108 and as I update is once again above the figure. EUR/USD, AUD/USD, NZD/USD traded more or less net sideways, all little changed. Note that the RBNZ announced plans to substantially beef up its bond buying (as part of its QE operation) next week (more here at this link).

GBP/USD is a few points lower on the session here. There was little of note in GPB news apart from the Chancellor extending the business loan scheme to medium sized companies. In business support news from the US the Treasury released its guidance on how to implement the small business lending package ion the US - banks have indicated they have not been given enugh notice to begin with the scheme at its scheduled opening time of Friday morning in the US. 

Forex news for Asia trading Friday 3 April 2020 Here

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Forex news for New York trading on April 2, 2020:

Markets:
  • CAD leads, EUR lags
  • Gold up $25 to $1617
  • WTI crude oil up $4.70 to $25.00
  • S&P 500 up 2.3% to 2625
  • US 10-year yields up 3 bps to 0.61%

Crude was about 10% higher in early European trade and near $22 but that was nothing compared to what was in store. At one point, Brent was up 46.7% and eventually closed up 20.9% in the largest one-day rally since 1991.

The President called CNBC's Joe Kernan to tell him he was about to tweet about a 10-15 mbpd Saudi and Russian oil cut. Kernan reported it on the air and crude started a wild run higher to $27.39 in minutes. Trump tweeted about it minutes later.

The second reaction was skepticism. Why would Russian and Saudi Arabia cut half their production? Oil as quickly back to $24.50 as Russia denied even talking to the Saudis.

The Saudi Arabia called for an emergency OPEC+ summit but said they were prepared to cut if everyone cut. So the plan now is to get all major oil producing nations on board. That's a tough task and crude continued to fall to $23.50 on reports that there is no real plan for anything. Yet it caught another bid into the settlement when one of the 3 Texas oil commissioners said he had talked with Russia.

Through all that, CAD was bouncing around with crude but probably not to the level you would think. The range was 1.4080 to 1.4300 and we're slated to finish down 40 pips on the day to 1.4150.

The more-directional trade as in EUR/USD. It was pressured early in US trade as it fell below yesterday's low of 1.1905 and steadily declined down to 1.0825 before a late 40-pip bounce.

Cable tried to make a break higher in early London trade but stalled ahead of 1.25 and then the sellers took over. It eventually found support at 1.2350 after two tests and rebounded to 1.2411 to finish up 40 pips on the day.

USD/JPY had its best day in two weeks with a 70-piip rally to 107.87. It sank down to 107.00 early but held yesterday's low and the jump in oil sparked a broader bounce in sentiment that halted the recent selling pressure.

All this to barely mention +6.5m jobless claims. The report put some pressure on the US dollar initially but it was forgotten by midday.

How's this for a factor:
ticker forex newsThat's $90 billion per day compared to $40 billion a month in QE3.


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Author: Justin Low

Forex news from the European trading session - 2 April 2020

Headlines:

Markets:

  • GBP leads, EUR lags on the day
  • European equities mildly higher; E-minis up 1.5%
  • US 10-year yields flat at 0.58%
  • Gold up 0.3% to $1,595.50
  • WTI up 10.3% to $22.40
  • Bitcoin up 5.3% to $6,691

EOD 02-04
The market was quiet for the most part with major currencies not really moving a whole lot while bonds stayed flat and equities are keeping mildly higher after falling yesterday.

Oil is the big mover as it is up by over 10% - though in dollar terms it is roughly $2 - as prices keep higher after China said that it will stack up on state reserves.

That helped to see price climb back above the $22 level after lingering around $21.50 at the tail-end of Asia Pacific trading.

In the currencies space, things were more calm as the dollar inched higher against the euro with sellers testing waters under the 200-hour moving average.

EUR/USD eased from 1.0940 to 1.0910 during the session as the greenback kept steadier as well. USD/JPY didn't do a whole lot, trading around 107.30-50 for the most part.

The pound is the lead gainer as cable pushed higher from 1.2410 to 1.2475 before easing off a little while risk currencies are a little bid but nothing exemplary during the session.

All eyes now turn towards the US weekly initial jobless claims report, where we look set for yet another record-shattering figure potentially today.

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Forex news for Asia trading Thursday 2 April 2020

The Reserve Bank of New Zealand instructed commercial banks to halt dividend payments today, until further notice and the US Federal Reserve eased capital requirements for large banks (see bullets above for more detail on both of these).

The Fed move is another policy aimed at supporting liquidity in the banking system, the announcement came in the wake of steep losses for US equities on Wednesday that followed a White House projection of up to 240,000 coronavirus-related deaths ahead for the country,

Moody's were on the case today, downgrading their outlook for the Australian banking sector to negative, but Australia was not the only one, also set to negative were the banking systems of China, India, Indonesia, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand, Vietnam.

Currency movement was less than we have become accustomed to recently. USD/JPY moved above 107.50 at one stage while EUR/USD has dribbled down under 1.0940.

Cable traded above 1.240 but is under and little net changed on the session as I update.

Oil moved net higher on the day while CAD is nevertheless little net changed. Gold lost a few dollars. 

Forex news for Asia trading Thursday 2 April 2020Title Here

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