Forex news from the European morning session - 12 March 2020
Headlines:
- Ireland announces closure of schools, to limit mass gatherings due to coronavirus
- OPEC said to have cancelled March technical conference call meeting
- Saudi Arabia reportedly won't join OPEC+ technical conference call this month
- BOJ reportedly likely to strengthen stimulus next week
- US futures fall by 5%, another limit down day
- Iran asks IMF for $5 billion to assist with coronavirus efforts
- UK's Sunak: We are accelerating towards the delay phase on the virus
- China NHC says that the country has passed the peak of the coronavirus epidemic
- Switzerland may soon declare state of emergency - local media
- US CDC warns citizens to avoid non-essential travel to Europe
Markets:
- JPY leads, AUD lags on the day
- European equities down by ~6%; E-minis limit down
- US 10-year yields down 15 bps to 0.71%
- Gold up 0.4% to $1,641.82
- WTI down 6.0% to $31.00
- Bitcoin down 24% to $5,959
It is another bloodbath of a day in the equities space after Trump called for a 30-day travel ban against Europe, sending the market into yet another spiral.
US futures were down around 4% to start the morning but as European equities a saw heavy losses pick up momentum, S&P 500 futures hit limit down with another 5% drop.
That also saw USD/JPY ease lower under towards 103.50-70 levels from a slight move higher towards 104.20 to start the European trading day.
Treasury yields also stayed pressured for the most part, with 10-year yields down by over 15 bps, but that did not stop the dollar this time around from posting gains today.
The greenback pushed higher against the likes of the euro and pound, with the former falling from 1.1310 to 1.1220 and the latter falling from 1.2810 to 1.2720 - hitting its lowest levels since October last year.
The aussie and kiwi were routed heavily amid the risk-off mood and all eyes will turn towards the ECB and Wall Street next on how the rest of the trading day will unfold.
