ForexLive Americas FX News Wrap: Re-opening Turns Into Re-closing

Published date: .

Markets:

  • Gold up $6 to $1770
  • US 10-year yield down 4.4 bps to 0.64%
  • WTI crude down 50-cents to $38.22
  • EUR leads, GBP lags

The weight of coronavirus news because too much for the market to bear on Friday as officials backpedaled on the reopening in several US states and the infection numbers continued to rise. The big jump in Florida in particular sent markets over the edge after a ho-hum start to the day.

The dollar trade was a bit of a mess as the dollar rallied initially on the risk-off trade but that was unwound by a combination of flows and US-centric worries. The euro held up notably well but couldn't crack 1.1240 on the upside.

Cable, meanwhile, was sold hard and barely bounced. From 1.2415 at the start of New York Trade, the pair plunged a full cent ahead of the London fix before a 25-pip bounce.

It was a different story in the loonie, which was the laggard this week. USD/CAD rose to 1.3716 at the high, breaking the June top by a few pips but there was a quick reversal down to 1.3665 in a complete round trip.

AUD/USD stumbled into the London close and had a bounce but sellers hit again late as stocks made a new low.

Another interesting one is USD/JPY. The yen isn't finding the safe haven flows that you would expect and I'd pin that on quarter-end flows. That will be a big factor in the week ahead.

Have a great weekend and get ready for another wild ride in the week ahead with non-farm payrolls to come.

Forex news for North American trade on June 26, 2020: