Forex news from the European trading session - 10 November 2020
Headlines:
- US October NFIB small business optimism index 104.0 vs 104.1 expected
- Germany November ZEW survey current situation -64.3 vs -63.5 expected
- UK October jobless claims change -29.8k vs 28.1k prior
- BOJ introduces special deposit facility to ensure financial system stability
- Germany reports 15,332 new coronavirus cases in latest update today
- ICYMI: UK government to press on with key Brexit legislation despite Lords defeat
Markets:
- GBP leads, CHF lags on the day
- European equities a little higher; E-minis down 0.1%
- US 10-year yields up 1.7 bps to 0.94%
- Gold up 0.9% to $1,879.10
- WTI up 0.8% to $40.60
- Bitcoin down 0.9% to $15,251
The market is taking a bit of a breather after the vaccine euphoria, with things looking more choppy as the optimism faded into the closing stages since yesterday.
US futures aren't doing a whole lot, switching between slight gains and losses but Nasdaq futures are being battered as tech is finding it tough to get on its feet this week.
In the currencies space, the mood is mixed as the yen recouped some losses from yesterday before giving that all away as Treasury yields climbed. USD/JPY rose from 105.00 to near 105.50 before settling in the middle of that currently.
The pound is the star performer as cable rose to a fresh two-month high in a push above 1.3200 with EUR/GBP likewise falling to a two-month low and testing 0.8900 as well as its 200-day moving average, seen @ 0.8921.
There aren't any fresh catalysts but be wary of ongoing Brexit talks in London this week.
USD/CAD is keeping slightly higher just above 1.3000 while AUD/USD is looking tepid just under 0.7300, trading little changed throughout the session.
Elsewhere, gold is recovering slightly after the sharp drop overnight and pushing near 1% gains but limited towards $1,890 for now.
Investors look be taking a step back to digest the vaccine and the election relief/euphoria, as the backdrop is still something that won't change for the next few months at least.
Europe and US are still seeing the virus situation escalate and while there is light at the end of the pandemic tunnel, the remaining journey is still mired by a heap of uncertainty. Although, central bank easy money is there to help guide the way.
