ForexLive European FX news wrap: Dollar keeps firmer to start the new week
Forex news from the European trading session - 11 January 2021
Headlines:
- Lighthizer urges Biden to keep tariffs on China - report
- Eurozone January Sentix investor confidence 1.3 vs 1.9 expected
- SNB total sight deposits w.e. 8 January CHF 702.4 bn vs CHF 702.7 bn prior
- RBNZ says that cyber attack was not specific to the central bank alone
- Germany reports 12,497 new coronavirus cases in latest update today
Markets:
- USD leads, NZD lags on the day
- European equities lower; E-minis down 0.5%
- US 10-year yields down 0.7 bps to 1.108%
- Gold down 0.3% to $1,842.82
- WTI down 0.6% to $51.92
- Bitcoin down 8.5% to $34,808
The dollar is moving from strength to strength as it pushes higher to start the new week, eyeing a third straight day of gains today.
The bulk of the move came early, with European trading mostly observing sideways trading with the dollar keeping firmer throughout.
EUR/USD did ease to a fresh three-week low of 1.2155 but is keeping just above that around 1.2160-70 levels for the most part. Meanwhile, USD/JPY continues to linger around 104.10-25 as it greets a key resistance trendline currently.
AUD/USD stayed pressured around 0.7700-20 while NZD/USD also kept just below 0.7200 throughout as commodity currencies are pressured on the back of a slightly softer risk tilt ahead of North American trading.
European equities opened lower and kept with the losses while US futures also tracked lower and didn't see much volatility throughout the session.
Elsewhere, gold stuck around $1,840 levels as it bounced off the Asia low upon testing its 200-day moving average while Bitcoin hovered around $33,000 to $34,000 levels after a brief decline to a low of $32,265 earlier on.
Wall Street may have a different say later on in the day so we'll see how the current narrative holds up once North American traders enter the fray in the session ahead.
