(21 April 2020)DAILY MARKET BRIEF 2:The sell-off in Loonie remains contained
In the FX, the euro remains bid against the US dollar near the 1.0820 mark. The downside pressures should persist in the run up to Thursday’s Eurogroup summit as European leaders are expected to announce joint measures to address the coronavirus-led economic slowdown, but the so-called corona bonds will be hard to agree on.
Cable is downbeat ahead of important economic data due this week. Due today, the British unemployment rate has certainly remained unchanged at 3.9% in February and wages growth near 3.0% y-o-y. But these numbers mean little given that we should see a significant deterioration in jobs starting from March.
The sell-off in Loonie remains contained, the USDCAD is a touch below the 1.42 mark but upside risks prevail with solid support seen near the 1.40 level.
Gold is stoic face to the historical decline in oil markets. The yellow metal trades a touch below the $1700 an ounce, hinting that the upside potential seems, at least temporarily, exhausted near the $1700/1750 area.
The US 10-year yield is down to 0.60%, as investors seek protection in US treasuries.By Ipek Ozkardeskaya
