Free Trial

Risk appetite provided the main drive FX......>

FOREX
MNI (London)
FOREX: Risk appetite provided the main drive FX Monday, helped by Fed Powell
comments Sunday, rebound in oil as global economies begin to open up, as well as
no major negative headlines concerning US-China trade/COVID-19 blame. The USD
lost ground vs the EUR, GBP and commodity currencies, with EM also able to make
gains, with the usual safe-haven JPY and CHF also pressed lower. This positive
risk outlook was given added strength as US equity markets reacted to news of
COVID-19 vaccine progress. EUR was given an added push higher as the
Merkel/Macron COVID recovery plan was greeted with optimism, E500bln in grants
seen as a constructive proposal. EUR/USD rallied to a high of $1.0927, off an
earlier $1.0800 base. Cable recovered off an early Asia dip to $1.2076 low to
$1.2228, though late EUR/GBP recovery provided a counter. EUR/JPY back above
Y117, while EUR/CHF was allowed to extend away from the Chf1.05 area to settle
above Chf1.06. USD/JPY above Y107.00 but resistance noted at Y107.50. 
- Tuesday, Australia Roy Morgan Confidence, UK Unemployment, Germany ZEW, US
Housing data. Fed Powell and Tr.Sec Mnuchin in front of the Senate Banking
Committee. Fed Kashkari and Rosengren also speak.     
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.