US dollarThe risk-on sentiment extended this Wednesday, as fears over China coronavirus receded after the country’s National Health Commission (NHC) reported a slowdown in the number of new virus cases. Meanwhile, China’s aviation regulator hoped that countries lift the virus-related travel restrictions at the earliest.
Across the fx space the USD/JPY pair remained underpinned by the gains in S&P 500 futures and Asian equities while a rebound in the US Treasury yields also helped the spot head back towards the 110.00 handle. Among the European currencies, the EUR/USD pair held steady above the 1.0900 levels, having found some respite from Fed Chair Powell’s induced retreat in the US dollar across the board. Meanwhile, GBP/USD traded better bid above 1.2950 ahead of the UK Autumn Budget statement.
On commodity markets, oil prices rallied over 1.5% amid risk-on while gold futures on Comex remained pressured near $1570.
After an eventful Tuesday’s economic calendar, Wednesday’s docket remains relatively light, in absence of first-tier macro data releases on both sides of Atlantic.
The EUR, GBP traders look forward to the European Central Bank (ECB) Chief Economist Lane’s speech, at 0950 GMT, and Eurozone Industrial Production data lined up for release at 10:00 GMT.
The UK docket remains data-empty and hence, the Brexit-related headlines will continue to play out ahead of the UK Autumn Forecast Statement.
The NA session sees the day 2 of the US Federal Reserve (US) Chairman Powell’s testimony, today before the Senate Banking Committee. Also, in focus will be the Fed Official Harker’s speech and EIA weekly US Crude Stocks Change data due at 15:30 GMT.