ForexLive European FX news wrap: Dollar falls amid market calm

Author: Justin Low | Category: News

Forex news from the European morning session - 20 March 2020

Headlines:

Markets:

  • AUD leads, USD lags on the day
  • European equities higher; E-minis up 2.5%
  • US 10-year yields down 14 bps to 0.99%
  • Gold up 2.3% to $1,505
  • WTI up 2.4% to $25.83
  • Bitcoin up 6.8% to $6,671

EOD 20-03
It was a rather straightforward session as the market behaved much calmer and friendlier, although the heightened volatility was still indubitably present.

Equities switched higher to post gains and Nasdaq futures also hit limit-up while the bond market also continued to respond well to the ECB stimulus package two days ago.

European equities opened with gains and never really let up since the opening bell, while bonds were steadily bid throughout the session.

The calm there was accompanied by a sharp retracement in the dollar, although the greenback continues to sit on the throne if you're taking into account the week as a whole.

The dollar saw stronger losses against the likes of the pound, aussie, loonie and kiwi in particular. That shouldn't be much of a surprise considering levels in sterling and the aussie are the lowest since 1985 and 2002 respectively.

Cable raced higher from 1.1640 to 1.1878 while AUD/USD jumped up from 0.5830 to 0.5985 before both pairs also backed off a little as dollar losses consolidated.

EUR/USD moved higher from 1.0730 to 1.0830 before seeing gains retrace almost completelty to near flat levels close to 1.0700 currently.

Elsewhere, gold and oil also kept higher amid weakness in the dollar but oil gains have been slightly tempered with amid headlines from Russia not really signaling that they will be coming to the negotiating table with Saudi Arabia just yet.

Looking ahead, it is all calm in the market for now but the key question is for how long can this keep up as the rest of the world continues to shut down?

I wish everyone safe health and hope you guys have a wonderful weekend ahead.

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