Forex news from the European trading session - 25 January 2021
Headlines:
- EU reportedly not happy with AstraZeneca over vaccine delays
- Ifo economist: German economy starting the new year with little confidence
- Germany January Ifo business climate index 90.1 vs 91.4 expected
- SNB total sight deposits w.e. 22 January CHF 704.4 bn vs CHF 703.8 bn prior
- BOJ's Kuroda: State of emergency measures may dampen Japan's economic recovery
- Germany reports 6,729 new coronavirus cases, 217 deaths in latest update today
Markets:
- NZD leads, EUR lags on the day
- European equities lower; S&P 500 futures up 0.2%
- US 10-year yields down 1.2 bps to 1.074%
- Gold up 0.4% to $1,862.87
- WTI up 0.2% to $52.39
- Bitcoin up 5.1% to $33,564
A key week in the market is starting off with a bit of a mixed picture for the dollar, as it gains against the euro following a poor German Ifo report with European equities also showing some uneasiness amid reports of vaccine delays in the region.
European indices opened strongly but reversed course and are settling at the lows now - with the DAX down 1% - ahead of North American trading.
US futures kept up a modest advance, led by Nasdaq futures which are up 0.9%.
Following the Ifo report, EUR/USD eased lower from 1.2170 to 1.2140 to test its 100-hour moving average and is holding just above that now.
GBP/USD also slipped as the dollar regained some ground on the session, falling from 1.3723 to 1.3666 and then bouncing off its own 100-hour moving average to near 1.3700 again before falling back to near the lows currently.
Elsewhere, AUD/USD is keeping a little higher around 0.7720 levels but off earlier highs while NZD/USD hugs the range around 0.7200-15 for the most part.
Looking ahead, Wall Street will have quite the say in determining how risk sentiment plays out in the session to follow. But all eyes this week will be on the FOMC meeting on Wednesday, which will be the highlight of a big week in the market.
Besides that, key earnings releases will be in focus alongside US GDP data as well as some elements of month-end flows - not to mention perhaps some hints of stimulus talks.
