Markets bounce, but recoveries shallow -......>

FOREX: Markets bounce, but recoveries shallow

- Following the market fallout Wednesday, equities are looking a little more

stable so far today, with continental markets in minor positive territory.

Nonetheless, US futures are again lower, indicating a negative open on Wall

Street. Across currencies, this has translated into a weaker JPY, EUR and in

favour of growth proxy FX including AUD and NZD. The bounce back is shallow,

however, with AUD/USD still well below yesterday's highs, but holding onto minor

gains for the week. This keeps focus on the developing COVID fears, with

numerous US states reporting new highs in daily reported cases.

- The Turkish central bank rate decision is also due, with the CBRT seen cutting

rates by a further 25bps to 8.00%, but many analysts see scope for a 50bps cut.

The Banxico decision is also on the docket, with markets unanimously seeing a

50bps cut to 5.00%.

- US data is the focus going forward, with weekly jobless claims, durable goods

orders for May and the tertiary reading for Q1 GDP. Speeches are also due from

ECB's Schnabel, Mersch & Knot, Fed's Kaplan & Bostic and BoE's Haldane.