Home Artikel Market News Markets Turn Risk-On As High-Beta Currencies Lead The FX Complex

Markets Turn Risk-On As High-Beta Currencies Lead The FX Complex

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CURRENT MARKET OUTLOOK

▶️ Chinese Ambassador to the US said China is prepared to negotiate with other countries for peaceful solution to South China Sea disputes.

▶️ United States Treasury Secretary Steven Mnuchin suggested that the Trump administration and Congress might reach an agreement on the COVID-19 relief package by the week’s end.

▶️ DXY dipped below 93.000, Antipodeans outperform, spot gold extends gains above USD 2,000/oz.

▶️ Wall Street’s main indexes rose on Wednesday on the back of better-than-expected corporate results and a surge in tech shares. Walt Disney surprisingly reported a quarterly profit, while CVS Health raised its full-year profit forecast and both Humana and Regeneron Pharmaceuticals beat estimates for quarterly profit.

DOMINANT CURRENCY SENTIMENT

During today’s U.S session, Wall Street’s main indexes rose on Wednesday on the back of better-than-expected corporate results and a surge in tech shares. Walt Disney surprisingly reported a quarterly profit, while CVS Health raised its full-year profit forecast and both Humana and Regeneron Pharmaceuticals beat estimates for quarterly profit.

In the FX complex, given the overall risk positive tone, JPY is the sessions laggard, although USD is also notably weaker with DXY breaking below the 93.00 handle.

In contrast, high-beta currencies remain in positive territory across the board with AUD remaining in pole position. Indeed, weakness in USD is reportedly adding to strength in commodities, a positive factor and further supporting AUD, NZD and CAD.

In the current session, market-moving data remains light with US ISM Non-Manufacturing PMI being the only tier one data point scheduled for release in today’s US session.

As such, we expect the overall risk tone and price action in commodities to remain the dominant influence for currency pairs, particularly high-beta, commodity-linked currencies and safe-haven currencies.

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