USD Trades Lower Again
The US dollar has continued to trade lower into the middle of the week as the correction down from the 99.82 highs develops further. With fears over the ongoing coronavirus outbreak in the US, the greenback has started to come back under pressure, falling alongside equities prices which have also been trading lower over the week. The USD index trades 98.97 last.
Euro Recovery Continues
EURUSD has been a little firmer over the European session so far on Wednesday. The weakness in USD this week has allowed the EUR correction to advance further with price trading up to 1.0884 last off last week’s 1.0831 lows. With little in the way of data, flows remain very much linked to USD and for now, the current move is still corrective and vulnerable to a reversal.
GBP Lower on Trade Talk Uncertainty
GBPUSD has been heavily lower today as concerns ahead of the start of UK/EU trade talks next week weigh on sentiment. The UK and EU have both set out very different visions for a trade deal and communications have been fraught, fuelling doubt that the two sides will be able to agree to a deal within the current timeframe. GBPUSD trades 1.2948 last.
Equities Down But Attempting Recovery
Risk assets have been lower again over the European session so far on Wednesday as uncertainty over the ongoing coronavirus outbreak continues to drive a flight to safety away from risky assets. The SPX500 has lost further value today though it is recovering off the lows as of writing. For now, price is trading 3125.38 last after breaking down below the 3156.90 level overnight.
Safe Havens Muted
Safe havens have had a mixed session so far with JPY and gold both strengthening initially against the dollar only to reverse gains over the session. XAUUSD trades 1647.14, capped by the 1651.76 level for now. USDJPY has traded back up to 110.43 today, recovering off the 109.89 lows overnight.
Crude Crashes – EIA Next
Oil prices have been lower again today. Crude prices broke down through the rising trend line support overnight in response to the API reporting a further inventories build in the US. Traders now wait on the headline EIA report due later today which could fuel further downside if a surplus is confirmed.
Loonie Pierces 1.33
USDCAD has been higher again today though is reversing a little as of writing. Price broke above the 1.33 resistance earlier in the session as weakness in crude prices weighs on CAD though the market has since come back under the level. While crude remains weak, further upside is likely.
Aussie On The Ropes
AUDUSD has had a very muted session so far today with price remaining very flat near the recent lows, trading .6576 last. Given the high level of uncertainty in the market and the broad risk-off tone we are seeing, further downside looks likely for the Aussie.