ForexLive European FX news wrap: Currencies mixed amid cautious tone
Forex news from the European trading session - 28 May 2020
- BOE's Saunders says that it is safer to err on the side of easing too much
- US to expel Chinese students with ties to China military schools - report
- China premier Li Keqiang: Economic growth is still important despite there being no target
- China legislature votes to endorse national security law for Hong Kong
- Saxony May CPI +0.9% vs +1.1% y/y prior
- Spain May preliminary CPI -1.0% vs -1.0% y/y expected
- easyJet to cut up to 30% of its workforce
- Germany Ifo institute says that economy likely to shrink by 6.6% this year
- South Korea says coronavirus cases related to logistics center cluster has risen to 82
- American Airlines reportedly plans 30% reduction of management, administrative staff
- Germany reports 353 new coronavirus cases, another 62 deaths in latest update
- NZD leads, CHF lags on the day
- European equities modestly higher; E-minis up 0.1%
- US 10-year yields flat at 0.677%
- Gold up 0.9% to $1,724.15
- WTI down 0.6% to $32.63
- Bitcoin up 0.7% to $9,228
The market moved along with caution throughout the session, as equities kept a more modest advance while major currencies didn't do a whole lot.
Despite the solid gains in US stocks yesterday, things are calmer for now with S&P 500 futures keeping near flat levels for the most part during the session.
Major currencies failed to gather any real conviction, trading narrowly with the dollar mixed across the board as the minor movements didn't lead to anything significant.
EUR/USD is keeping just above 1.1000 for now with GBP/USD near 1.2250 after having eased to a low of 1.2234 to test near-term levels amid dovish comments from BOE's Saunders.
AUD/USD kept in a range of around 0.6595-25 for the most part, not really showing much conviction as the risk mood is keeping mildly optimistic but not running away with it.
It is over to North American traders to figure out the situation once more, after the dollar managed decent gains in trading yesterday despite the more positive risk mood.
But with the S&P 500 having broken above its 200-day moving average and the 3,000 level, buyers will have to prove their mettle in following through on the more bullish daily break so let's see what the response is going to be later.