Forex news from the European trading session - 17 June 2021
Headlines:
- Eurozone May final CPI +2.0% vs +2.0% y/y prelim
- SNB's Jordan: Highly valued Swiss franc is holding down inflation
- SNB's Jordan: Anchored inflation expectations speak for loose policy
- SNB leaves policy rate unchanged at -0.75%, as expected
- ECB's Lane: It is premature to talk about end of PEPP
- Switzerland May trade balance CHF 4.95 billion vs CHF 3.84 billion prior
Markets:
- USD leads, CHF lags on the day
- European equities mixed; S&P 500 futures down 0.2%
- US 10-year yields down 0.7 bps to 1.568%
- Gold down 1.4% to $1,786.73
- WTI down 0.1% to $72.06
- Bitcoin up 1.7% to $39,172
It was all about the dollar as the post-FOMC reaction continued to reverberate, even without much of a follow through in the surge from Treasury yields as seen yesterday.
The greenback kept a solid advance against the euro and franc to begin with, before extending gains against the pound and loonie while paring its earlier fall against the aussie and kiwi - and then some.
EUR/USD fell from 1.1990 to 1.1925 while GBP/USD kept with the drop below 1.4000 to test its 200-day moving average @ 1.3935 on the session.
USD/CAD looks to be coming up for air as it breaks above 1.2300 with key trendline resistance and the 100-day moving average being eyed up next.
Equities remain more tepid after yesterday's losses were rather contained, though sentiment is still leaning towards the softer side today with US futures down.
Elsewhere, gold is extending its overnight drop in a push below $1,800 for the first time in six weeks - taking out some key technical levels at the moment.
