Forex news from the European trading session - 11 November 2020
Headlines:
- Ireland's Coveney: Brexit talks likely to go into next week
- US MBA mortgage applications w.e. 6 November -0.5% vs +3.8% prior
- Reminder: It is a partial holiday for US markets today
- ECB's Knot: We are not excluding any measures ahead of December decision
- EU, UK likely to miss mid-November deadline to finalise Brexit deal - report
- China October M2 money supply +10.5% vs +10.9% y/y expected
- The market is no longer pricing in negative rates by the RBNZ for next year
- Germany reports 18,487 new coronavirus cases in latest update today
Markets:
- NZD leads, EUR lags on the day
- European equities higher; E-minis up 0.8%
- Gold down 0.2% to $1,873
- WTI up 2.7% to $42.50
- Bitcoin up 1.5% to $15,628
It was a quiet session for the most part as investors feel like they will be left to fend on their own today with a US holiday coming up and the Treasuries market closed.
That will make for little interest barring any major headline surprises in the session ahead.
US futures are trading higher as dip buyers step into the picture but the currencies market isn't quite on the same page as the dollar is keeping firmer in European trading.
EUR/USD gradually slumped from 1.1810 to 1.1754 as sellers look to seize near-term control in an effort to break below the 200-hour moving average @ 1.1761.
USD/JPY also got a slight nudge higher from 105.25 to 105.50 as the pair challenges its daily trendline resistance from June @ 105.42.
GBP/USD rose to around 1.3300 early on as EUR/GBP slumped but pound sellers stepped in as Brexit negotiations look set to get pushed back to late next week.
That saw cable fall to 1.3240 initially before consolidating around 1.3260-70 and then slipping further to 1.3225 as the dollar kept steadier.
The kiwi still leads gains following the RBNZ policy decision, as traders price out odds of negative rates next year but NZD/USD eased from the highs around 0.6890 to 0.6865.
Looking ahead, investors will have little to work with as the market keeps in a mixed mood and does its own thing today. We'll likely only get better clarity on how the macro backdrop is playing out once normal trading conditions resume tomorrow.
