Forex news from the European trading session - 12 February 2021
Headlines:
- Japanese government committee reportedly approves use of Pfizer vaccine
- EU's von der Leyen: Recovery fund may start to be dispensed by middle of the year
- Switzerland January CPI -0.5% vs -0.6% y/y expected
- UK PM Johnson to make statement on 22 February on plan to exit lockdown
- UK Q4 preliminary GDP +1.0% vs +0.5% q/q expected
- Germany's Altmaier: Next steps to ease restrictions coming closer as virus cases fall
- Germany reports 9,860 new coronavirus cases, 556 deaths in latest update today
Markets:
- USD leads, NZD lags on the day
- European equities a little lower; E-minis down 0.3%
- US 10-year yields flat at 1.16%
- Gold down 0.4% to $1,817.90
- WTI down 0.7% to $57.80
- Bitcoin up 1.5% to $47,673
It was a relatively quiet session as the risk momentum looks to stall ahead of the long weekend in the US, after a bit of a tepid period during the last two days.
The dollar managed to recoup some of its losses from earlier in the week as it presses against key technical levels ahead of North American trading.
EUR/USD eased from 1.2120 to 1.2097 and is holding just above 1.2100 after testing its 100-hour moving average. USD/JPY moved higher from 104.85 to 105.18 and is sticking around 105.00 with large expiries and its 200-hour moving average in play.
GBP/USD also lost momentum on a fall below its 100-hour moving average from 1.3800 to 1.3776 and is holding just above the lows at the moment.
Elsewhere, AUD/USD fell from 0.7750 to 0.7720 and is holding at the lows around its 100-hour moving average currently while NZD/USD slumped below both its key hourly moving averages in a drop from 0.7720 to 0.7190.
Just be mindful that with the long weekend coming up in the US, the recent exhaustion in the upside momentum could lend itself to some added profit-taking and de-risking. But watch out for stimulus headlines as that could keep buyers interested.
Other than that, the market continues to reevaluate things on the week:
I wish everyone a good weekend and for those celebrating, a prosperous and blessed Lunar New Year!
