Fading equities favour havens, CHF rallies....>

FOREX: Fading equities favour havens, CHF rallies for 4th session

- A turnaround in equity markets was led by European indices, which closed lower

by as much as 5%, with losses led by banking and energy shares. The currency

response was to buy haven FX in spades, with CHF and JPY benefiting. Persistent

CHF strength has now driven USD/CHF and EUR/CHF to partially reverse the recent

bounce and may force the SNB to act sooner rather than later to prevent any

disorderly strength. The moves followed official data confirming fears that

Coronavirus cases in re-opening states such as Florida were beginning to

accelerate.

- EUR and USD rallied too, albeit to a lesser extent. Emerging market currencies

bore the brunt of the risk-driven sell-off, with ZAR, TRY, BRL and others

reversing recent outperformance. USD/ZAR's bounce took the pair through the

100-dma. 

- UK monthly GDP data, and industrial/manufacturing production is due Friday, as

well as US import/export price indices and prelim June Uni of Michigan sentiment

data.