ForexLive European FX news wrap: Commodity currencies still under the cosh
Forex news from the European trading session - 20 August 2021
- USD/CAD stays on course towards 1.3000 after break of July high
- Hang Seng index closes at lowest level since November, enters bear market
- The technical breakdown in CAD/JPY starts to take shape
- AUD/USD continues downside track towards 0.7000
- UK July retail sales -2.5% vs +0.4% m/m expected
- Japan plans to ramp up daily COVID-19 tests as infections continue to surge
- Germany reports highest daily new COVID-19 cases in three months
- CHF leads, CAD lags on the day
- European equities lower; S&P 500 futures down 0.3%
- US 10-year yields down 1 bps to 1.23%
- Gold up 0.2% to $1,781.10
- WTI down 0.7% to $63.25
- Bitcoin up 0.7% to $46,900
It was a quiet session overall as the market kept more cautious after the broader retreat in risk trades yesterday, though commodity currencies remain pressured in FX.
The loonie is leading losses as USD/CAD rose by over 100 pips at the highs, building on early gains from 1.2850 to near 1.2950 on the session; now seen near 1.2900.
The aussie and kiwi are also holding lower, with AUD/USD marked down from 0.7140 to a low of 0.7107 before keeping around 0.7120 levels now. NZD/USD moved down from 0.6840 to 0.6807 and is now trading near 0.6825.
Elsewhere, the pound is also under a bit of pressure as cable falls by 0.2% to near 1.3600.
The dollar is keeping steadier overall with little change observed against the euro and yen, even as risk tones are keeping more cautious for the most part.
European indices are down slightly alongside US futures, hinting at a more subdued end to the week although one can't really rule out another episode of dip buyers coming to the rescue again for US equities late on in the day.
All things considered, perhaps this isn't the taper tantrum the market was anticipating.