Markets continue risk-on trading
Despite concerns of coronavirus spread in Beijing and the US, investors are focusing on stimulus efforts, vaccine progress and re-opening of economies. The US dollar is mixed against its peers while equities continue to be supported. News out of the eurozone showed that Germany’s cabinet accepted a multi-billion euro debt plan and that the country approved human trials for a new vaccine.
June 17, 2020
EUR/USD 1.1243 GBP/USD 1.2548 USD/CAD 1.3539 AUD/USD 0.6902 USD/JPY 107.3000 USD/CNH 7.0772 USD/ILS 3.4502 USD/MXN 22.2184 USD/CHF 0.9487 USD/INR 76.1650
USDThe greenback remains largely unchanged with the Bloomberg Dollar Spot Index down less than 0.1%. Federal Reserve Chairman Jerome Powell is due to speak before the House Financial Services Panel later today.GBPInflation data out of the UK was the weakest release since 2016 causing speculation of additional stimulus at the Bank of England’s meeting on Thursday. GBP/USD fell as much as 0.4% before paring losses trading around 1.2565.EUR
EUR/USD fell as much as 0.4% as traders turn cautious on risk given the surge in corona virus cases in Beijing and the US. The euro leads losses against the USD and remains the biggest loser for G10 currencies.CADThe Canadian dollar is holding its ground while risk sentiment remains intact. USD/CAD fell as much as 2% earlier in the trading session and remains slightly lower trading around 1.3545.ASIA/PACIFICUSD/JPY remains steady after falling as low as 107.17. The Japanese yen strengthened against the US dollar on concerns of a second wave of the corona virus. Bank of Japan kept its debt purchase amount unchanged.
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