Forex news from the European trading session - 21 May 2021
Headlines:
- ECB's Lagarde: Inflation rise this year to be temporary
- Risk continues to hold steadier in European morning trade
- UK May flash services PMI 61.8 vs 62.2 expected
- Eurozone May flash services PMI 55.1 vs 52.5 expected
- Germany May flash manufacturing PMI 64.0 vs 65.9 expected
- France May flash services PMI 56.6 vs 53.0 expected
- UK April retail sales +9.2% vs +4.5% m/m expected
- Germany reports 8,769 new coronavirus cases, 226 deaths in latest update today
Markets:
- CAD leads, EUR lags on the day
- European equities a little higher; S&P 500 futures up 0.4%
- US 10-year yields flat at 1.624%
- Gold flat at $1,878.00
- WTI up 1.8% to $63.05
- Bitcoin up 3.5% to $41,473
It was a quiet session for the most part as risk assets held steadier, with European indices a touch higher while US futures are pointing to a modest gain ahead of the open later.
In terms of data, UK April retail sales reaffirmed very strong reopening prospects surrounding the economy while euro area PMI readings were robust once again so far in Q2.
That said, there was a bit of a late nudge lower in the euro after ECB president Lagarde shrugged off any potential rise in inflation as temporary.
EUR/USD is keeping lower around 1.2190 as it struggles to stay above the 1.2200 level for now. Meanwhile, GBP/USD climbed to a high of 1.4234 from 1.4200 but is settling back near flat levels as the dollar keeps steady across the board too.
Commodity currencies were initial laggards but the moves were mild and they are seen more mixed and little changed in general as we look towards North American trading.
