Forex news for North American trade on April 8, 2020:
- Bernie Sanders to suspend Presidential campaign
- Oil jumps on cut talk from Algeria
- CDC reports total coronavirus cases up to 395,011 vs 374,329 yesterday
- New York state coronavirus deaths 779 vs 731 yesterday
- Italy coronavirus cases rise by most in three days
- UK reports deadliest day yet: 938 coronavirus deaths
- Fed's Evans warns that even in best-case scenario economy will be less-prosperous
- US weekly EIA oil inventories +15177K vs +9250K expected
- Mnuchin: We hope to tell small businesses we won't run out of money
- WTO says global goods trade will fall 13-32% on coronavirus
- Australia passes $80 billion jobs-rescue package
- Canada February building permits -7.3% vs -4.0% expected
- Canada March housing starts 195.2K vs 172.5K expected
- FOMC minutes: Trading conditions across a range of markets were severely strained
Markets:
- Gold down $1 to $1646
- WTI crude up $2.51 to $26.16
- US 10-year yields up 5 bps to 0.76%
- S&P 500 up 90 points to 2749
- AUD leads, EUR lags
The Australian dollar broke above the late-March high and that added technical buying pressure in an already-positive day but the 50-pip gain on the day wasn't exactly a blockbuster when compared to the moves in stocks and oil.
Those two were lifted late in the on talk from Algeria about OPEC cuts and Bernie Sanders dropping out of the Presidential race. US stocks touched just above yesterday's highs before closing right at them.
USD/JPY didn't take any signal from stocks as it rose early, sank midway through the NY morning and then climbed 20 pips from the lows to finish slightly higher.
The pound was encouraged by better talk on Boris Johnson's health but that was contrasted by rising virus deaths and infections nationally. The high of 1.2420 came just after the fix but it peeled back 50 pips from there.
CAD wasn't buying into the oil hype. That was a bit of a puzzle as it trailed AUD and NZD significantly. It traded 40 pips on either side of 1.4040 in North American trade but ultimately finished in the middle.
The euro retained a heavy tone as European leaders begin to get bogged down in stimulus and cooperation headaches. Watch out for some of the same from Congress in the days ahead as they try to get more small business funding.
