ForexLive European FX news wrap: Dollar falls, risk cautious ahead of jobless claims

Author: Justin Low | Category: News

Forex news from the European morning session - 26 March 2020

Headlines:

Markets:

  • JPY leads, USD lags on the day
  • European equities lower; E-minis down 0.9%
  • US 10-year yields down 8 bps to 0.79%
  • Gold up 0.1% to $1,618
  • WTI down 2.5% to $23.90
  • Bitcoin up 1.0% to $6,664

EOD 26-03
It was a bit of a countdown to the US weekly initial jobless claims report later today as the market proceeded with caution in anticipation of the blockbuster release.

The dollar was mixed to start the session but gradually eased against most major currencies but kept higher against the risk/commodities bloc. However, that all changed as Fed chair Powell jawboned the currency lower in a rare television appearance on NBC Today.

Powell said that the Fed isn't going to run out of ammunition and that they still have policy room to act, weakening the greenback across the board.

USD/JPY fell from 110.00 to 109.60 with AUD/USD climbing from 0.5970 to 0.6020. Meanwhile, EUR/USD also crept higher from 1.0950 to 1.0979 on the session.

As for risk, equities remain on the softer side as European stocks and US futures keep modest losses amid the cautious tone in the market. Oil is also sitting lower on the day in a relatively narrow range so far with gold keeping near flat levels for the most part.

The bond market though was generally bid amid the defensive risk mood but also as the ECB confirmed that they stepped in today with bond purchases via their new QE program.

Looking ahead, all eyes are now on the US weekly initial jobless claims report and you can check out Adam's preview on the key release here.

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