Forex news from the European morning session - 15 June 2020
Headlines:
- EU's von der Leyen: Ready to intensify talks with UK, inject fresh momentum into negotiations
- Bundesbank said to be urged to evaluate ECB bond buying in draft legal report
- Stocks trim losses but still keeping lower on the day
- Eurozone April trade balance €1.2 billion vs €23.5 billion prior
- Beijing announces halt to plans of reopening entertainment venues amid latest virus developments
- Japan says that there is no change to plans for further reopening on 19 June
- SNB total sight deposits w.e. 12 June CHF 679.5 bn vs CHF 680.1 bn prior
- Reminder: EU, UK leaders set to discuss Brexit later today
- China stats bureau says that economy has not yet returned to a normal level
- Tokyo reportedly finds another 50 new coronavirus cases in the past day
- Brexit: UK MPs reportedly set to urge government to allow vote on extending transition period
- Six markets in Beijing closed on concerns of new coronavirus outbreak
Markets:
- CHF leads, AUD lags on the day
- European equities lower, but off lows; E-minis down 2.0%
- US 10-year yields down 3.8 bps to 0.665%
- Gold down 1.1% to $1,711.33
- WTI down 2.2% to $35.45
- Bitcoin down 3.6% to $9,123
It is risk-off to start the week and while things looked ugly at the open in European morning trade, stocks trimmed losses over the past few hours but are still seeing red.
European indices saw losses close to 3% early on before skimming off some of that to sit just over 1% lower ahead of North American trading.
It is a similar story for US futures, which were down by over 3% at one stage and is now holding a little over 2% declines amid coronavirus jitters.
In the currencies space, the aussie continues to stay on the back foot but is seen moving back up to 0.6810-20 levels from around 0.6780 at the start of the session.
The dollar and yen saw gains pare back a little with USD/JPY rising from 107.00 to 107.30.
EUR/USD also managed to pare losses from 1.1230 to 1.1250-60 while cable moved up from two-week lows at 1.2455 earlier to hold around 1.2510-30 levels currently.
Technical levels are going to be key to watch today and none bigger than the S&P 500, with the downside move set to potentially call into question sellers' conviction to keep under 3,000 and also a test of its 100-day moving average @ 2,944.99.
