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New recovery highs for equities sends USD.....>

FOREX
FOREX: New recovery highs for equities sends USD spiralling
- A strong session for cyclical stocks saw both the S&P 500 and Dow Jones clear
notable psychological hurdles at 3,000 and 25,000 to strike new recovery highs.
Much of the risk appetite stemmed from the (so far) smooth re-opening of certain
US states, which are showing few signs so far of a second wave of Coronavirus
infections. The rally in equities worked against the greenback Tuesday, which
underperformed all others in G10. Haven FX wasn't far behind, with JPY also a
laggard. The moves worked in favour of AUD, which rallied sharply to briefly top
the 200-dma at $0.6659 for the first time since January.
- GBP/USD traded well, looking to secure a close above the 50-dma for the first
time since early May, making $1.2517 Fib retracement the next target. CAD was
also a standout performer, with USD/CAD falling through 1.3851 support within
the downtrend channel drawn from early April.
- The data calendar is quieter Wednesday, with the Fed's Beige Book the only
notable release. Speakers include ECB's Lagarde & de Guindos and Fed's Bullard &
Bostic.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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