ForexLive European FX news wrap: A softer start for risk

Forex

Forex news from the European morning – 23 March 2020

Headlines:

Markets:

  • JPY leads, NZD lags on the day
  • European equities lower by 3-4%; E-minis down 3.4%
  • US 10-year yields down 4 bps to 0.80%
  • Gold down 0.3% to $ 1,494
  • WTI down 1.6% to $ 22.26
  • Bitcoin down 1.8% to $ 5,862

EOD 23-03
It was a purely risk-off session in the market today as investors continue to digest negative developments from the coronavirus outbreak across the world.

The cases and deaths continued to pick up in Europe as more and more cities and countries are announcing further lockdowns and going into isolation, banning foreign entry.

US futures hit limit-down very early in the day and trimmed losses during the European morning but are still sitting over 3% lower ahead of North American trading.

European equities were also beaten down and that kept the likes of the yen and franc bid during the session, with the aussie and kiwi on the back foot.

But it was all about the dollar in the currencies space as the greenback recouped earlier losses to push higher against the rest of the major currencies bloc.

USD/JPY trimmed losses from 109.67 to 110.80 currently with EUR/USD also falling from 1.0769 to 1.0680 during the session. Meanwhile, cable also fell from 1.1700 to a low of 1.1507 as the pound stays pressured amid multi-decade lows still.

Looking ahead, all eyes will be on the next vote on the US economic relief package at 1345 GMT after the initial vote yesterday failed to pass.

The market is holding out hope that the bill will provide some relative comfort in these tough times, but the key question is, for how long can that last?

With the shocker of a US weekly jobless claims approaching on Thursday, let’s see what else does central bank and government measure have in store for us.

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