Thursday, January 28, 2021

Quiet, regular tones in anticipation of Powell, Biden

Foreign exchange information from the European buying and selling session – 14 January 2021



  • AUD leads, CHF lags on the day
  • European equities barely increased; S&P 500 futures -0.1%
  • US 10-year yields up 2.four 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

EOD 14-01
It was a comparatively quiet session as soon as once more in Europe because the market continues to depend all the way down to Fed chair Powell’s speech later immediately in addition to US president-elect Joe Biden’s fiscal stimulus proposal to comply with afterward within the day.

There was some response to an earlier report of a $2 trillion package deal set to be introduced by Biden, which noticed first rate flows throughout Asia Pacific buying and selling. However there wasn’t a lot comply with by way of in Europe because the temper was extra muted all through the session.

European equities are holding steadier, whereas US futures have been extra combined. S&P 500 futures are down 0.1%, conserving little modified for essentially the most half whereas Nasdaq futures stored a bit decrease all through. In the meantime, Dow futures stayed extra constructive, up 0.3%.

In FX, issues have been quiet because the greenback stored steadier however is seeing a slight decline in opposition to the commodity currencies; although the strikes aren’t something in depth.

EUR/USD lingers close to the lows now near 1.2140-50 however caught round 1.2150-60 for essentially the most half in the course of the session, nonetheless buying and selling little modified in the intervening time.

USD/JPY hugged the 104.00 deal with following a check of key trendline resistance ranges simply above the determine stage earlier within the day. In the meantime, AUD/USD stored a slight advance round 0.7760-70 in the course of the session however by no means threatened the in a single day highs @ 0.7780.

Elsewhere, gold caught round near its 200-day transferring common close to $1,842 for essentially the most half following an early dip as merchants flirt with the important thing technical stage, awaiting additional clues from Powell and Biden later within the day.

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