ForexLive European FX news wrap: Dollar holds steady amid softer risk mood

Author: Justin Low | Category: News

Forex news from the European trading session - 21 May 2020

Headlines:

Markets:

  • EUR leads, AUD lags on the day
  • European equities lower; E-minis down 0.5%
  • US 10-year yields down 0.8 bps to 0.672%
  • Gold down 0.7% to $1,736.50
  • WTI up 1.8% to $34.10
  • Bitcoin down 2.6% to $9,335

EOD 21-05
It was a quiet session overall as risk tones stayed on the defensive and that helped the dollar keep firmer against most of the major currencies basket on the day.

But a couple of bids in the euro helped to push the single currency higher, with EUR/USD moving from 1.0960 to test the 1.1000 handle once again as it did yesterday.

The 200-day moving average sits close by at 1.1015 and will also be a key level to watch.

Elsewhere, it is all about the dollar keeping its advance as we see US futures keep lower by around 0.5% to 0.7% throughout the session. European stocks are also more subdued as a result, with the DAX still down by a little over 1% at the moment.

That is seeing AUD/USD softer at around 0.6560-70 levels with NZD/USD also trading lower to 0.6110-20 levels for the most part during the session.

The pound did pick up a little bid from lows just under 1.2200 to 1.2250, before paring those gains to settle around 1.2210-30 levels as we look towards North American trading.

The big question for Wall Street will be what to make of the latest pullback here. As the S&P 500 approaches its key daily moving averages, it is backing off a little at first glance.

Is US-China tensions and the sheer amount of uncertainty suddenly enough to turn the rally around? Or is this all just merely a pause before stocks continue to rip higher once again?

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