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USD on the bounce as equities moderate -......>

FOREX
FOREX: USD on the bounce as equities moderate
- After four sessions of losses, the greenback is bouncing Wednesday, rising
against all others in G10. The move comes alongside a moderation of global
equities, with core European markets all lower by around 2% at the NY crossover.
The uptick in the greenback comes despite lower US yields so far today, with the
10y dropping convincingly below 0.70% for the first time since Apr07. Newsflow
behind the moves this morning has been thin on the ground, with profit taking
likely after most major pairs and equity indices hit fresh recovery highs.
- Petrocurrencies are under pressure again, with NOK, RUB and CAD lower again as
oil resumes its slide. The IEA released new forecasts showing the largest
downtick in oil demand on record for 2020, countering any OPEC+ output cuts.
- Weekly MBA mortgage applications, March US retail sales and industrial
production data take focus Wednesday. Earnings season continues, with reports
due today from Citi, Goldman Sachs, BofA and UnitedHealth. The Bank of Canada
rate decision crosses at 1500BST/1000ET, with the Bank seen holding rates at
0.25%.

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