ForexLive European FX news wrap: Reflation trade hits the pause button.. for now

Author: Justin Low | Category: News

Forex news from the European trading session - 17 February 2021

Headlines:

Markets:

  • JPY leads, NZD lags on the day
  • European equities lower; E-minis down 0.2%
  • US 10-year yields down 1.5 bps to 1.298%
  • Gold down 0.2% to $1,791.63
  • WTI up 1.5% to $60.96
  • Bitcoin up 4.7% to $50,885

EOD 17-02
After the hectic moves yesterday, the reflation trade is taking a bit of a breather today with the bond rout meeting some pause as the market goes in search of some calm.

That said, sentiment remains on a knife's edge ahead of US trading with European equities keeping more tepid alongside US futures for the most part.

In the major currencies space, the dollar is holding its ground as it pushes forward with gains once again. EUR/USD fell from 1.2090 to 1.2057 with GBP/USD also slipping from 1.3900 to 1.3855 and running into a test of its 100-hour moving average.

USD/CAD continues to be upended by its 200-hour moving average on the session as highs around 1.2710 limit gains despite higher oil prices.

Meanwhile, AUD/USD also slipped from 0.7770 to 0.7750 as the market continues to try and digest the reflation narrative and how things will shape up.

Elsewhere, gold fell to fresh lows in over two months just below $1,785 but managed to trim some of that declines for now; though the chart is still looking rather iffy.

And in the crypto space, Bitcoin managed to break $51,000 with buyers looking to hold a break today above the $50,000 level as the exuberance continues.

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