Market moves to risk-on after news of US government stimulus
The US dollar weakened as traders moved to risk-on assets following news that the US government is evaluating a $1 trillion infrastructure proposal. US Retail Sales were released better than expected at 17.7% vs. 8.4%. Fed Chair Jerome Powell is due to speak at 10am via video conference before the Senate Banking Committee.
June 16, 2020
EUR/USD 1.1274 GBP/USD 1.2623 USD/CAD 1.3535 AUD/USD 0.6926 USD/JPY 107.4000 USD/CNH 7.0767 USD/ILS 3.4563 USD/MXN 21.9713 USD/CHF 0.9496 USD/INR 76.2100
USDInvestors moved towards risk-on sentiment after news that the US government is evaluating a $1 trillion infrastructure proposal. The USD fell as much as 0.4% as stocks rallied.GBPSterling strengthened after positive commentary around Brexit negotiations renewed hope that a deal can be reached. GBP/USD moved 0.3% higher trading up to 1.2688.EUREUR/USD broke above the 1.13 handle hitting a high of 1.1353 before reversing gains. The currency pair fell to a day’s low of 1.1270 as US yields rose.CADUSD/CAD remains largely unchanged as renewed hopes for additional US fiscal stimulus boost market risk sentiment. Investors will focus on commentary from the Bank of Canada Governor Tiff Macklem and testimony by Fed Chair Jerome Powell.ASIA/PACIFICUSD/JPY gained slightly currently trading around 107.40. The Bank of Japan met overnight and announced that it would leave its main monetary policy the same and review the size of its response measures to the virus, assuring to do more if needed.
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