US Manufacturing on Watch
The US dollar has taken a sharp turn lower late in the week as selling kicks in ahead of the key 100 level on the index. This level has not been passed in three years and is a major psychological level. For now, however, bullish USD sentiment continues. Looking ahead today, the US manufacturing reading could provide ammunition for a further topside run on a strong reading. USD index trades 99.58 last.
Euro Higher on Better Data
EURUSD has been a little higher over the final European morning of the week as the market reacts to stronger than expected German and eurozone manufacturing PMI readings. While both sets were still in contractionary territory last month, both were higher than expected, moving back towards the neutral level which is offering some encouragement today. EURUSD trades 1.0803 last, fighting to hold above the 1.08 level for now.
GBP Rallies on Data Beat
GBPUSD has been higher today also, benefiting from the weakness in USD as well as better than expected data. UK manufacturing PMI came in at 51.9 vs 49.7 expected and 50 previous, showing a strong recovery over the last two months as Brexit uncertainty cleared up. GBPUSD trades 1.2917 last, holding above 1.2869 for now.
Risk Assets Fall Back
Risk assets have been attempting to recover today following a heavy slide yesterday on fears of a poor US earnings season as well as ongoing fears around the impact of coronavirus. The SPX500 crashed as low as 3339.53 yesterday before recovering to 3356.28 last, still capped by the 3358.86 level for now.
JPY Ends Weak Heavily Lower
Safe havens have had a better start today with both JPY and gold rising against USD. On the week, however, JPY is down heavily against USD on Japanese recession fears while gold ends the week firmly higher. XAUUSD trades 1633.65 last, having broken above the bull channel top. USDJPY trades 111.73 last having exploded from lows of mid 109 on the week.
Crude Retreats From Resistance
Oil prices have been lower today, recoiling from earlier highs on the week as the fall back in risk appetite, combined with another bearish report from the EIA. Crude inventories rose by a further 400k barrels last week. Crude trades 53.13 last, capped by the 54.75 level for now.
Loonie Holds Above Support
USDCAD has been in tight consolidation over the last 24 hours as the market awaits fresh drivers. The fall back in crude has weighed on CAD, though the weakness in USD has stemmed a proper rally in USDCAD which trades 1.3261 last, ending the week above the 1.3225 level.
Aussie Ends The Week Lower
AUDUSD ends the week firmly lower following the break below .6682 which has seen price falling back to .6595 last, a level last seen in early 2008. The Aussie has been under heavy selling pressure as a result of the coronavirus outbreak which is expected to weigh on Chinese activity and consequently AUD.