Free Trial
WHITE HOUSE

COVID-19 Response Team Holding Press Briefing

EURGBP TECHS

Bullish Outlook

US

Corporate Credit Update: Steady

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

USD Dominates, Fresh Lows For A$, NZ$, CNH And KRW

FOREX

The DXY is back above 104.00, but stronger gains seen against commodity FX and Asian FX

  • The USD has been on the front front for much of the day, with AUD/USD and NZD/USD down 0.80% and 0.90% respectively. Only JPY is higher against the USD. EUR/USD is modestly weaker, but holding above 1.0500 at the time of writing.
  • Positive Asian equity sentiment from yesterday has unraveled, all major markets weaker in the region. Fresh community transmission of Covid in Shanghai dashing hopes of an easing of restrictions in the near term. Equity futures in the US have also turned more negative, presenting an additional headwind.
  • Commodity sentiment also softened, Brent crude back down and Iron ore back to $126/tonne.
  • USD/CNH also broke higher, rising above 6.8000. The market shrugged off the marginally stronger than expected CNY fix. The covid news above not helping, while PBOC Dep Gov Chen noted that the central bank has guided loan interest rates to decline and increased focus on growth stabilsation.
  • Other USD/Asia pairs have tracked USD/CNH higher, albeit with a beta lower then 1. The exception has been USD/KRW, where spot is up 1.2%, and breaking above 1290. 2020 highs are now in sight for this pair.
202 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

The DXY is back above 104.00, but stronger gains seen against commodity FX and Asian FX

  • The USD has been on the front front for much of the day, with AUD/USD and NZD/USD down 0.80% and 0.90% respectively. Only JPY is higher against the USD. EUR/USD is modestly weaker, but holding above 1.0500 at the time of writing.
  • Positive Asian equity sentiment from yesterday has unraveled, all major markets weaker in the region. Fresh community transmission of Covid in Shanghai dashing hopes of an easing of restrictions in the near term. Equity futures in the US have also turned more negative, presenting an additional headwind.
  • Commodity sentiment also softened, Brent crude back down and Iron ore back to $126/tonne.
  • USD/CNH also broke higher, rising above 6.8000. The market shrugged off the marginally stronger than expected CNY fix. The covid news above not helping, while PBOC Dep Gov Chen noted that the central bank has guided loan interest rates to decline and increased focus on growth stabilsation.
  • Other USD/Asia pairs have tracked USD/CNH higher, albeit with a beta lower then 1. The exception has been USD/KRW, where spot is up 1.2%, and breaking above 1290. 2020 highs are now in sight for this pair.