The correction in the Dollar and Yen intensified as market participants made a quick retreat from risk-off positioning. The risk-sensitive AUDUSD and AUDJPY have been the biggest gainers out of the most traded currencies, with both showing gains of comfortably over 1% at their highs. Wrong-footed speculative accounts beat a retreat from short positions in assets and high beta currencies. Even stock markets in locked-down Europe rallied strongly, with many national bellwether indices showing gains of over 2% while the broad pan-Europe Stoxx 600 rose by about 1.5%.
US Equity markets have opened higher, just like yesterday, after last week’s more than 5% losses. The industrial USA30 leads the way up over 1% from last nights close. All three major indices remain below their key 20, and 50-day moving averages, everything could change tonight – or nothing could change. The FOMC, NFP, the BOE, ADP and plenty more PMi’s still to come in potentially the week-to-end-all-weeks.
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Stuart Cowell
Head Market Analyst
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