Forex news from the European trading session - 21 January 2021
Headlines:
- UK PM Johnson: Too early to say when we'll be able to lift restrictions
- UK January CBI trends total orders -38 vs -35 expected
- What to expect from the ECB later today?
- Biden set to issue sweeping orders to tackle coronavirus pandemic
- Fauci says that US will remain a member of the WHO
- The volatility swings continue in Bitcoin
- Euro stays more vulnerable ahead of the ECB
- BOJ's Kuroda: Too early to consider exit from powerful monetary stimulus
- BOJ's Kuroda: Will not hesitate to ease further if needed
Markets:
- NZD leads, USD lags on the day
- European equities higher; E-minis up 0.3%
- US 10-year yields up 0.8 bps to 1.088%
- Gold flat at $1,870.73
- WTI down 0.5% to $53.06
- Bitcoin down 8.9% to $31,810
The market is going 'back to basics' as the dollar languishes with risk trades keeping firmer across the board in European morning trade today.
European equities opened higher and kept with gains while US futures also maintained a modest advance following record closes in the major indices yesterday.
S&P 500 futures are up 0.3% while Nasdaq futures are up 0.6% on the session.
That in turn is pinning the dollar and yen lower on the day, with the greenback gradually easing throughout the session after earlier declines.
GBP/USD managed to break above the 1.3700 handle as such, pushing to its highest levels since May 2018 in a move from 1.3680 to 1.3746.
That owed to a drive lower in EUR/GBP as the pair eases below key support of 0.8866-67 and tests its key weekly moving averages closer to 0.8834-37.
EUR/USD struggled initially, paring early gains but came back roaring in a push from 1.2115 to 1.2151 as buyers look to test the highs from yesterday near 1.2158.
The dollar weakness was more evident against the antipodeans as the aussie and kiwi benefits from the better risk mood as well. AUD/USD hovered around 0.7760-80 on the session, testing some minor resistance at the upper end currently.
Meanwhile, NZD/USD rose from 0.7200 to 0.7220 levels now as buyers take aim at the highs last week closer to 0.7240.
Elsewhere, precious metals were more subdued with gold trading around $1868-73 for the most part while silver briefly climbed above $26 but is keeping little changed around $25.85 to $25.95 as we look towards North American trading.
