ForexLive European FX news wrap: Dollar slumps on more positive risk mood
Forex news from the European trading session - 20 May 2020
- Eurozone April final CPI +0.3% vs +0.4% y/y prelim
- China says that it vows retaliation as US seriously violates One-China policy
- "Frugal" EU members to make counter-proposal to Franco-German plan later today
- Italy's Conte to ask EU for more funds in latest package proposal - report
- New Zealand exports seen slowing in May, according to indicative data
- Germany reports 797 new coronavirus cases, another 83 deaths in latest update
- NZD leads, USD lags on the day
- European equities a touch higher; E-minis up 1.2%
- US 10-year yields up 1 bps to 0.699%
- Gold up 0.3% to $1,750.95
- WTI up 2.2% to $32.68
- Bitcoin up 0.3% to $9,724
It was a session with little notable headlines as risk trades retraced the late fall fall in US trading yesterday amid vaccine doubts.
US futures gradually moved higher and is now keeping above 1% ahead of the open later.
That in turn has kept the pressure on the dollar in the currencies market. Price action was largely consolidating for the most part but the greenback has softened over the past hour or so, even against the Japanese yen.
EUR/USD climbed from 1.0940 to 1.0967 while USD/JPY eased from 107.70 to 107.55.
The pound had some a slight nudge lower after softer UK inflation data, with cable easing to 1.2222 before recovering to a high of 1.2276 after as the dollar fell.
Meanwhile, AUD/USD steadily climbed from 0.6530-40 levels to hit a high of 0.6583 as buyers look to secure a break above the 30 April high at 0.6570.
It is all about the positive risk momentum as we look towards North American trading now, so let's see if buyers can keep up that momentum later on in the day.