ForexLive European FX news wrap: Quiet, steady tones in anticipation of Powell, Biden
Forex news from the European trading session - 14 January 2021
- ECB: PEPP more efficient than a rate cut in the current pandemic conditions
- German economy contracted 5.0% in 2020
- USD/JPY still the pair to watch in the trading day ahead
- Gold flirts with break of 200-day moving average after earlier dip
- Germany reports deadliest day of the pandemic with 1,244 deaths today
- BOJ maintains economic assessment for 5 of Japan's 9 regions
- AUD leads, CHF lags on the day
- European equities slightly higher; S&P 500 futures -0.1%
- US 10-year yields up 2.4 bps to 1.107%
- Gold down 0.2% to $1,841.60
- WTI down 0.5% to $52.64
- Bitcoin up 2.3% to $38,144
It was a relatively quiet session once again in Europe as the market continues to count down to Fed chair Powell's speech later today as well as US president-elect Joe Biden's fiscal stimulus proposal to follow later on in the day.
There was some reaction to an earlier report of a $2 trillion package set to be announced by Biden, which saw decent flows during Asia Pacific trading. But there wasn't much follow through in Europe as the mood was more muted throughout the session.
European equities are holding steadier, while US futures were more mixed. S&P 500 futures are down 0.1%, keeping little changed for the most part while Nasdaq futures kept a little lower throughout. Meanwhile, Dow futures stayed more positive, up 0.3%.
In FX, things were quiet as the dollar kept steadier but is seeing a slight decline against the commodity currencies; though the moves aren't anything extensive.
EUR/USD lingers near the lows now close to 1.2140-50 but stuck around 1.2150-60 for the most part during the session, still trading little changed for the time being.
USD/JPY hugged the 104.00 handle following a test of key trendline resistance levels just above the figure level earlier in the day. Meanwhile, AUD/USD kept a slight advance around 0.7760-70 during the session but never threatened the overnight highs @ 0.7780.
Elsewhere, gold stuck around close to its 200-day moving average near $1,842 for the most part following an early dip as traders flirt with the key technical level, awaiting further clues from Powell and Biden later in the day.