ForexLive European FX news wrap: Dollar firms, pound gains on BOE negative rates pushback

Author: Justin Low | Category: News

Forex news from the European trading session - 4 February 2021



  • GBP leads, EUR lags on the day
  • European equities a little higher; E-minis flat
  • US 10-year yields flat at 1.139%
  • Gold down 0.9% to $1,816.51
  • WTI up 0.8% to $56.13
  • Bitcoin up 1.1% to $37,750

EOD 04-02
The positive risk mood to start the new month is pausing for some breath as we see sentiment moderate a little in Thursday trading so far. European equities and US futures are generally little changed but not really tilting to being more risk averse either.

But that hasn't quite stopped the dollar from nudging higher as EUR/USD falls below 1.2000 for the first time since 1 December. The break hasn't been all too convincing though, with the low only touching 1.1983 and price hovering around 1.1990 levels still.

USD/JPY kept up a push above 105.00 as such, climbing to 105.20-30 levels. Meanwhile, AUD/USD and NZD/USD eased with the former falling from 0.7640 to 0.7620 while the latter declined from 0.7200 to 0.7180 on the session.

The pound was a notable move as it fell from 1.3600 to 1.3567 only to rebound as the BOE continued to brush aside talk of negative rates. That saw cable bounce from 1.3570 to 1.3660 levels currently ahead of US trading.

In turn, EUR/GBP is under pressure on a firm break below 0.8800 as it falls 0.5%.

Elsewhere, gold and silver are continuing to slump amid a firmer dollar with gold now easing towards a potential retest of $1,800 next. Meanwhile, silver is toying with key near-term levels on the week closer to $26.28 still at the moment.

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