ForexLive European FX news wrap: A slight breather but caution remains

Author: Justin Low | Category: News

Forex news from the European trading session - 20 July 2021

Headlines:

Markets:

  • CAD leads, NZD lags on the day
  • European equities higher; S&P 500 futures up 0.6%
  • US 10-year yields up 0.3 bps to 1.184%
  • Gold up 0.3% to $1,817.03
  • WTI up 0.8% to $66.96
  • Bitcoin down 3.6% to $29,668

It was a quiet session in terms of headlines as the market sought a bit of a breather after the sharp and heavy moves seen yesterday - where risk trades were routed.

Things were calmer today as European equities retraced some of the losses yesterday while US futures are showing a modest bounce for the time being.

Treasury yields were also higher earlier in the day, with 10-year yields up around 1.21% but sentiment remains fragile as yields are closer to flat levels now near 1.18%.

As such, while there is some relief, it isn't enough to warrant a step away from trepidation as of yet. FX is also signaling the same as commodity currencies are still under light pressure as the technicals are looking rather shaky/vulnerable.

The aussie and kiwi are down to their lowest levels this year, taking out key support and are left hanging at the moment awaiting further clues on risk sentiment.

The dollar is slightly firmer with cable on the verge of a breakdown with the double-bottom from the March and April lows starting to crack today.

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