ForexLive European FX news wrap: Dollar mixed as everything-rally pauses

Author: Justin Low | Category: News

Forex news from the European trading session - 6 November 2020



  • CHF leads, AUD lags on the day
  • European equities lower; E-minis down 0.7%
  • US 10-year yields up 1.2 bps to 0.775%
  • Gold up 0.1% to $1,952.24
  • WTI down 3.2% to $37.55
  • Bitcoin up 1.0% to $15,387

EOD 06-11
The everything-rally pauses to catch its breath as the market continues to be honed in on the US election result, with the key news there being that Biden has managed to flip Georgia and is now leading in the state by 1,096 votes based on the latest count.

Equities are seeing a pullback after the impressive rally during the week, with European stocks now pinned down by nearly 1% with US futures also reflecting a modest drop.

S&P 500 futures are down 0.7% while Nasdaq futures are down 1.0%.

With the weekend approaching, there might be hints of profit-taking after the relief from the election over the past few days ahead of the potential for the results to be contested i.e. legal challenges or recounted in states that have been running close.

In the FX space, the dollar is keeping more mixed but tilted slightly lower as it trades weaker against the euro, yen, franc and kiwi.

EUR/USD advanced from 1.1840 to 1.1884 where it is running into some resistance from the 21 October high @ 1.1881. There is also a daily trendline resistance @ 1.1838 to consider ahead of the close today in case the upside momentum wanes later on.

USD/JPY is continuing its track lower below 104.00 despite some verbal remarks by Japanese officials from earlier, with little in the way from a potential drop towards 102.00.

Meanwhile, NZD/USD is knocking on the door of the 0.6800 handle as the kiwi flirts with a break to its highest levels since April last year.

Elsewhere, the dollar is keeping firmer against the pound, aussie and loonie but gains are rather modest for the most part with cable still seen keeping above 1.3100.

In the commodities space, oil is giving back gains after the overnight push while gold is keeping firmer just above $1,950 as buyers eye a break following the jump yesterday.

It has been a messy week and I'm sure we could all use a breather to digest everything that is happening. I wish you all a wonderful Friday and a great weekend ahead!

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