ForexLive European FX news wrap: Calm but delicate
Forex news from the European trading session - 1 March 2021
- US Treasury yields tick higher ahead of North American trading
- Fed's Barkin: I would be disappointed if we didn't see yields rise as the outlook improves
- Saxony February CPI +1.3% vs +1.0% y/y prior
- UK February final manufacturing PMI 55.1 vs 54.9 prelim
- Hang Seng adopts sweeping changes to Hong Kong stock benchmark
- European bond yields fall further on the session
- SNB total sight deposits w.e. 26 February CHF 704.1 bn vs CHF 704.4 bn prior
- Eurozone February final manufacturing PMI 57.9 vs 57.7 prelim
- BOJ prepared to quell risk of yields rising too much ahead of policy review - report
- Germany reports 4,732 new coronavirus cases, 60 deaths in latest update today
- CAD leads, CHF lags on the day
- European equities higher; E-minis up 1.0%
- US 10-year yields up 3.6 bps to 1.441%
- Gold up 0.2% to $1,737.70
- WTI up 1.3% to $62.32
- Bitcoin up 6.0% to $47,968
The session started off with a more risk-on tone as equities pushed higher with the bond market exuding more calm. The RBA doubled-down on QE earlier in the day and the BOJ also offered a bit of warning to JGB investors during the session.
That helped to keep risk in a better spot with European bond yields also seen retreating.
However, Treasuries and the dollar are offering warning signs to the market to start the new week as the former sold off while the latter pushed higher.
10-year yields climbed from 1.40% to 1.45% in European morning trade and is keeping thereabouts with 30-year yields holding above 2.20% currently.
The greenback also surged ahead with gains as EUR/USD fell from 1.2090 to 1.2029 and testing key support from its 100-day moving average before holding.
GBP/USD pared its earlier advance from 1.3990 to 1.3930 as EUR/GBP also saw its fall today stall at around 0.8620-30 levels for the time being.
The loonie is arguably the exception as USD/CAD pushed lower from 1.2700 1.2680 although oil prices have come off earlier highs - but still keeping more upbeat.
AUD/USD saw its earlier gains trimmed from 0.7770 to 0.7730 while NZD/USD erased all gains from 0.7290 to 0.7235 as the dollar firmed across the board.
All eyes are still on the bond market and it doesn't take much to really tip the scales considering how delicate market sentiment is at the moment.