Session Wraps - Major Forex Headlines wrapped up by trading session

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Forex news for North American trade on May 29, 2020:

Markets:

  • Gold up $14 to $1732
  • WTI crude oil up $1.28 to $35.00
  • US 10-year yields down 4.3 bps to 0.65%
  • S&P 500 +0.5%
  • AUD leads, NZD lags
The main event of the day was China and Trump's planned announcement to retaliate for the Hong Kong security law. That kept markets on edge and erased an early positive tone in risk assets.

As he began to speak and launched some tough talk, risk trades sagged but when it came time to deliver the US reaction, it was meek. All the announcements related to things that were leaked or rumored previously and stocks quickly rebounded along with commodity FX.

Earlier in the day it was all about flows. It was the final trading day of the month and there was a big bid in EUR/GBP and GBP/USD. The fixing demand arrived but sellers met it and both pairs sagged. Cable fell a full cent from the highs and as in negative territory on the day before a late bounce to a 16 pip daily gain.

The euro will close the week close to 1.1100 and that's comfortably above the key 1.1020 zone but off the 1.1145 session high.

When you check the broader rundown in the market there wasn't much to report in terms of daily moves in FX with most pairs finishing about 20 pips from starting levels. AUD had a bit more jam but the highs came early in Europe.

The gold and oil markets were more-lively as both were bid into month-end. Oil was quiet until the final hour of trading when a big bid came through ahead of the monthly fix. Gold rebounded for the second day then briefly dipped after Trump but was picked up again late.
Forex news for North American trade on May 29, 2020:

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Author: Justin Low

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Forex news from the European trading session - 29 May 2020

Headlines:

Markets:

  • EUR leads, USD lags on the day
  • European equities lower; E-minis down 0.3%
  • US 10-year yields down 2.6 bps to 0.664%
  • Gold up 0.6% to $1,728.30
  • WTI down 2.6% to $32.83
  • Bitcoin down 0.5% to $9,402

EOD 29-05
The session had a couple of notable headlines but the market remains largely sidelined, but in a cautious manner, awaiting from US president Trump's speech on China later today.

Equities kept slightly weaker while Treasury yields are also sitting lower amid the more defensive mood in the market in anticipation of the key risk event.

That said, major currencies did have some decent moves but the common theme is that of dollar weakness with chatter of month-end rebalancing coming into play.

EUR/USD nudged higher to fresh highs since late March, rising from 1.1090 to 1.1140. We also saw USD/JPY fall to near two-week lows in a drop from 107.40 to 107.10 levels.

Rsk currencies have been a little more resilient as well despite the cautious mood with AUD/USD rising from 0.6630 to 0.6667 - trying to get above its 200-day moving average.

The pound had a bit of a tricky session with EUR/GBP rising to fresh two-month highs above 0.9000 dragging the quid lower initially, with cable falling back just under 1.2300 before coming back up now to near 1.2350 levels ahead of North American trading.

All eyes are on Trump's speech later today but before that we will be hearing from Fed chair Powell so let's see what either of them will deliver for markets ahead of the weekend.

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Forex news for Asia trading Friday 29 May 2020

A round of data from Japan today but with nothing much out of the ordinary:

  • low CPI (Tokyo are inflation a bit higher than expected though)
  • weak retail
  • weak industrial output

Despite all this the yen showed a little strength. USD/JPY dropped under its overnight lows, taking out a few stops sub 107.60. The fall fizzled out after 20 points, USD/JPY holding lows circa 107.40.

EUR also had a small higher move against the dollar. As I update it has fallen just short of its overnight high within a 15-odd point range.

It appears Asia is content to wait to hear what US President Trump has to say on China on Friday.

AUD and NZD maintained tight ranges also.

Apart from the data the news flow was light. We had comments out of China on reunification with Taiwan. Such sort of talk is not unusual but needs to be read in the context of more determined moves from the mainland on HK this week. Perhaps there is more to come on Taiwan? Again, we eagerly await Trump on Friday and if there is anything he thinks he can do. As yet I am still awaiting an idea the time Trump is expected to speak.

Forex news for Asia trading Friday 29 May 2020Title Here

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Forex news for North American trading on May 28, 2020:

Markets:

  • S&P 500 down 6 poitns to 3029
  • Gold up $9 to $1718
  • WTI crude oil up 67-cents to $33.48
  • US 10-year yields up 1 bps to 0.69%
  • EUR leads, CAD lags
Who would have thought that the market could so easily brush off another 2.1m jobless claims and some of the worst durable goods orders and GDP reports on record and then crumble on an announcement about an announcement? That's what happened as the positive tone in risk assets evaporated when Trump said he will announce something about China tomorrow, presumably some kind of repercussion for the Hong Kong security law.

Before that AUD/USD made a decent rally to 0.6668 before giving nearly all of it back.

Outside of the general risk trade, the theme on the day was optimism in Europe. Another day of gains in stock markets there helped to finally propel the euro above 1.1020 and there was a non-stop bid in European and North American trade up to 1.1093 before a late 20-pip did.

The pound also brushed off the latest Brexit worries with a solid gain to 1.2325.

Forex news for North American trading on May 28, 2020:

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