Forex news from the European trading session - 16 November 2021
Headlines:
- Eurozone Q2 GDP second estimate +2.2% vs +2.2% q/q prelim
- Fitch downgrades Kaisa from 'CCC-' to 'C' on missing interest payments
- UK October jobless claims change -14.9k vs -51.1k prior
- There is no breakthrough to report on Biden-Xi meeting - senior US official
- Biden told Xi that US will stand up for its interests, values together with its allies - US statement
- Biden told Xi that US does not support Taiwan independence, says Chinese media
Markets:
- GBP leads, NZD lags on the day
- European equities a little higher; S&P 500 futures flat
- US 10-year yields down 0.8 bps to 1.613%
- Gold up 0.4% to $1,870.30
- WTI up 0.6% to $81.38
- Bitcoin down 5.7% to $60,235
The much anticipated meeting between US president Biden and China president Xi produced a big fat nothing as both sides stuck with their red lines in talks and didn't really push the boundaries of one another all too much.
The statements between the US and China differed in terms of messaging but what else is new? We've learned this time and time again during the infamous trade talks.
But at least the market can breathe some relief that tensions aren't escalating so stocks are keeping a little calmer as a result, awaiting the US retail sales data later.
The dollar kept firmer throughout, with EUR/USD lingering at the lows since July last year around 1.1350-60 levels. USD/JPY is staying elevated at 114.20-30 levels while the greenback also posted a modest advance against the commodity currencies.
USD/CAD moved up from 1.2500 to 1.2540 while AUD/USD kept lower after retreating from its 100-day moving average yesterday, hovering around 0.7335-40 levels today.
The pound is a notable gainer as EUR/GBP slumps to fresh two-week lows, as sellers look to target the 0.8400 level. Cable gained from 1.3425 to 1.3470 with a steady UK labour market report earlier not doing the quid any harm whatsoever.
Elsewhere, gold is looking to build on its recent momentum as it trades up above $1,870 to fresh highs since June while Bitcoin is looking troubled as price tests waters below $60,000 for the first time since 1 November.
