ForexLive European FX news wrap: ECB introduces new forward guidance
Forex news from the European trading session - 22 July 2021
- Key change to the ECB statement in July
- ECB leaves key rates unchanged in July monetary policy meeting, as expected
- UK July CBI trends total orders 17 vs 16 expected
- Oil sticks with the bounce, nearly erases Monday drop
- BOE's Broadbent: The appropriate response to inflation may be nothing
- Two more Olympic athletes test positive for COVID-19
- GBP leads, EUR lags on the day
- European equities higher; S&P 500 futures up 0.1%
- US 10-year yields up 1.1 bps to 1.293%
- Gold down 0.5% to $1,795.21
- WTI up 0.9% to $70.92
- Bitcoin up 0.2% to $31,851
It was a bit of a slow-paced session with broader markets keeping steady. Equities inched higher while Treasury yields are also holding the rebound in the past two days. 10-year yields are up slightly but sitting just below 1.30% for now.
That isn't giving FX much to work with, though the pound is keeping a solid rebound after stopping the technical bleeding against the dollar earlier in the week.
Cable is pushing up to 1.3760-70 from around 1.3720 earlier in the day, now testing its 200-hour moving average as buyers wrestle back some control.
Meanwhile, price action is more mixed for the dollar with the euro dropping slightly after a small whipsaw on the ECB policy meeting statement. The central bank introduced a new forward guidance while allowing for an inflation overshoot perhaps before reacting.
That saw the euro nudge up to 1.1813 before falling to 1.1772 against the dollar.
Elsewhere, oil is continuing the technical rebound from yesterday as price climbs up to a high of $71 on the session and is hovering just below that now.