ForexLive Americas FX news wrap: Cable reverses on negative rate talk

Author: Adam Button | Category: News

Forex news for North American trading on May 20, 2020:

Markets:

  • Gold up $4 to $1749
  • S&P 500 up 46 points to 2969
  • US 10-year yields down 1 bps to 0.68%
  • WTI crude up $1.63 to $33.59
  • NZD leads, GBP lags
The US dollar was under pressure for much of the day, including a fall against the yen despite improving risk appetite early in the day.

One of the headlines that hurt the market was a move from US Senators to unanimously pass a bill that makes it tough for Chinese companies to stay listed in the US. That also hurt the US dollar, along with the spiraling war of words between the US and China.

The other headline that was a factor was the BOE's Bailey talking about negative rates again. Officials there have repeatedly floated the idea while cautioning that it's just an idea but the central bank could be backing itself into a corner. Cable had been flying high ahead of the comments but is 50 pips off the highs and near a session low.

On the technical side, the most-notable move was AUD/USD rallying above the May and  April highs to the best levels in two months. That breaks a double-top and is a good sign for the broader risk trade, or at least the idea that Australia can cruise along with few cases.

A broader confirmation on the positive sentiment would be a breakdown in USD/CAD and that pair is close as it sank another 50 pips to 1.3868 at the lows before bouncing 30 pips on the China headlines.
Forex news for North American trading on May 20, 2020:
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