Forex news for North American trade on April 23, 2020:
- US weekly initial jobless claims 4427K vs 4500K expected
- US Markit April prelim services PMI 27.0 vs 31.5 expected
- Gilead drug Remdesivir flops in first trial - report
- The Brazilian real hits all time low as it's the worst emerging market currency this year
- California reports deadliest day for coronavirus with 115 deaths
- France coronavirus deaths hit 4-day low, Turkey and New Jersey cases near 100K
- Italy reports 2646 new coronavirus cases vs 3370 yesterday
- New York coronavirus deaths 438 vs 474 yesterday
- Kansas City Fed manufacturing index -30 vs -37 expected
- US March new home sales -15.4% m/m vs -15.8% expected
- UK coronaivurs deaths rise 638 to 18,738
- Fed likely to expand program to buy state and local debt - report
- Swiss government now sees 2020 GDP down 6.7% compared to -1.5% previously
Markets:
- Gold up $18 to $1723
- WTI June crude up $3.27 to $17.03
- US 10-year yields down 2.3 bps to 0.59%
- S&P 500 down 1 point to 2798
- NZD leads, CHF lags
The FX market was in more of a risk-on mood that equities or bonds. The commodity currencies strongly outperformed and the Australian dollar rose to the highest since April 14.
The US dollar sagged early in New York trading but it was tough to pin down exactly why. In any case, the euro's gains unwound when it became clear that eurozone leaders weren't going to come up with any solid fresh stimulus and it fell further on talk that they won't have anything ready until 2021.
Cable tried to make a break for the upside and cleared 1.2400 but was sucked back down to 1.2340 in an unceremonious move.
The Canadian dollar liked the rally in oil but note that only front month crude climbed while the rest of the strip was more-or-less flat.
Gold is set to finish at the highest in 8 years and is within striking distance of the 8-year intraday high set earlier this month at $1747.
