Forex news for New York trade on March 9, 2020:
- ECB boosted pace of bond buying to €18.2B last week
- RBNZ: Will be removing some of the temporary liquidity facilities put in place
- U.S. Treasury auctions off $58 billion of 3 year notes at a high yield of 0.355%
- EIA sees US crude oil production rising to 12 mbpd in 2022
- US House to vote on stimulus bill tomorrow
- US February NFIB small business optimism index 95.8 vs 97.0 expected
Markets:
- Gold up $33 to $1717
- US 10-year yields down 6.2 bps to 1.53%
- S&P 500 up 54 points to 3875
- WTI crude down $1.9 to $63.95
- AUD leads, USD lags
If you're looking for any kind of headline to explain the market moves, you won't find it.
This was a sentiment-driven rebound in tech after four days of selling. Yields ticked lower early and continued that way. That was probably what flicked the switch and from there, stocks, precious metals and bitcoin took off.
The FX market reaction was generally to sell the US dollar as yields fell, with USD/JPY falling despite the best day in the Nasdaq since November.
Commodity currencies were higher despite middling performance in commodities. Copper and oil were both down 2% but AUD was very strong and the loonie tracked higher.
The day ahead will feature more volatility with the US CPI report and a 10-year auction. Good luck out there.
