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Greenback stages impressive bounce on poor....>

FOREX
FOREX: Greenback stages impressive bounce on poor earnings
- The financial effects of the COVID-19 outbreak were clear for all to see in US
bank earnings Wednesday. Stronger trading revenues across FICC desks were
overwhelmed by sharp growth in provisions and reserves built up by the likes of
Goldman Sachs, Bank of America and Citigroup to combat a likely uptick in
non-performing loan books. These firm led US equities lower at the open,
snapping a recent winning streak over the past few weeks for the S&P 500.
- The longer-end of the US yield fell sharply, but this did little to stymie the
USD, which pressured EUR/USD back toward the Apr9 low. Commodity and growth-tied
FX sank. NOK, CAD and AUD among the poorest performers after the IEA's latest
oil demand report forecast the biggest downtick in daily oil demand on record
for 2020. The launch of Bank of Canada provincial and commercial bond purchases
added further pressure to the CAD, seeing USD/CAD rally north of C$1.41.
- The Australian jobs report, Eurozone industrial production, US weekly jobless
claims, housing starts & building permits are all due Thursday. Earnings are
scheduled from BlackRock and Abbot Labs.

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