Greenback on the backfoot as equities.........>

FOREX: Greenback on the backfoot as equities reverse course

- Scandi FX outperformed from the off, with SEK boosted on the somewhat hawkish

outlook from the unchanged Riksbank decision as well as a bounce in WTI futures

curve helping to fuel a recovery in petrocurrencies. EUR/SEK sank well through

the April lows, eyeing the 200-dma at 10.6904.

- After starting well and striking another recovery high, US stocks took a dive

and hit went into reverse shortly after the open, although volumes and liquidity

remain somewhat light ahead of tomorrow's Fed meeting. The pullback in stock

markets helped lead a decent rally in Treasuries, with lower yields across curve

sapping the greenback ahead of the close.

- Focus turns to Australian CPI data for Q1, regional German CPIs and advance Q1

US GDP data. The numbers are seen showing the first evidence of

Coronavirus-inspired economic weakness, with analysts forecasting a 3.9%

annualized drop. The Fed rate decision is also due, with markets watching for

any tweaks to asset purchase programmes or any commitment on Federal funds

rates.