ForexLive European FX news wrap: Gold dips, dollar steady ahead of payrolls
Forex news from the European trading session - 8 January 2021
- UK approves Moderna coronavirus vaccine for use
- Japan reportedly posts record 7,757 new coronavirus cases today
- EU's von der Leyen: EU has secured an additional 300 million Pfizer vaccine doses
- UK December Halifax house prices +0.2% m/m vs +0.5% m/m expected
- Gold sees a quick dip below $1,900 to start the session
- France November trade balance -€3.56 billion vs €-5.00 billion expected
- Germany November trade balance €17.2 billion vs €19.2 billion expected
- Tokyo reports 2,392 new coronavirus cases in latest update today
- Germany posts deadliest day of the pandemic in latest update today
- AUD leads, EUR lags on the day
- European equities higher; E-minis up 0.4%
- US 10-year yields flat at 1.083%
- Gold down 1.2% to $1,890.34
- WTI up 1.2% to $51.44
- Bitcoin up 4.6% to $41,590
It was a largely quiet session as major currencies didn't do all too much, with the dollar keeping steadier throughout ahead of the non-farm payrolls report later.
The key happening on the session was a quick dip in gold at the European market open, which saw price jump lower from $1,904 to $1,878 before holding a slight bounce after.
That said, price is keeping just under its 100-day moving average and broken trendline resistance - now turned - support around $1,893-94 for now as sellers seize near-term control on a push below the $1,900 handle.
Elsewhere, the dollar was steadier as it gained slightly against the euro and yen before paring the advance ahead of North American trading.
EUR/USD fell from 1.2260 to 1.2213 to test the 31 December low before creeping back up while USD/JPY moved up to 104.00 before easing back near unchanged at 103.81.
Equities are continuing to keep a modest advance after yesterday's gains as the market maintains its focus on the reflation/stimulus narrative. Precious metals may not follow that for now, but the theme should at least keep through to the weekend.
I wish you all a good Friday and a wonderful weekend ahead.