Forex news from the European trading session - 23 February 2021

Headlines:

Markets:

  • GBP leads, CHF lags on the day
  • European equities lower; S&P 500 futures -0.4%, Nasdaq futures -1.4%
  • US 10-year yields flat at 1.363%
  • Gold flat at $1,810
  • WTI up 0.7% to $62.15
  • Bitcoin down 16% to $46,165
EOD 23-02

Equities are taking a bit of a knock, though we are seeing a lot of that play out in the tech space as Nasdaq futures were sent down by as much as 2% during the session - with investors waiting on Fed chair Powell's testimony for more clues later today.

The selloff has eased a little but US futures are still pointing to a softer opening, although Dow futures are holding on relatively well near flat levels. That continues to point towards a rotation play from growth to value, which is part of the big picture narrative perhaps.

Elsewhere, the bond market kept calmer throughout but the dollar held steadier after some shakiness early on as the currency benefited from the softer risk mood.

The moves were modest as EUR/USD fell from 1.2175 to 1.2145 while AUD/USD erased gains from 0.7930 to 0.7890 before keeping closer to 0.7900 currently.

Meanwhile, USD/CAD also inched up from 1.2590 to 1.2615-20 during the session.

The pound though is more resilient as cable stuck around 1.4080-90 levels throughout with the franc lagging as EUR/CHF breaks to its highest levels since December 2019.

Looking over to commodities, gold remains steady just above $1,800 while oil held on to most of its gains above $62 but faces key resistance levels ahead of the month-end.

Over to crypto, it is looking like a bloodbath as Bitcoin plunges further in a drop to just under $45,000, as much as 18%, at the lows with altcoins also following suit.

All eyes will be on Powell next but he is unlikely to shake up the status quo today. So, let's see how the market takes to that given the latest stumble in stocks.