Forex news from the European trading session - 13 November 2020
Headlines:
- UK PM spokesman: Familiar differences remain in Brexit talks on level playing field, fisheries
- Fed's Williams: News on the economy has been much better than expected
- Eurozone Q3 secondary GDP reading +12.6% vs +12.7% q/q prelim
- ECB's de Cos: Upcoming macroeconomic projections in December likely to be revised downwards
- Italy reportedly set to extend regional lockdown system beyond 3 December
- Japan reports record 1,719 new coronavirus cases in latest update today
- ECB's Schnabel: ECB is going to be there for as long as it is necessary
- China extends congratulations to Joe Biden on winning the US election
- Germany reports record 23,542 new coronavirus cases in latest update today
Markets:
- GBP leads, NZD lags on the day
- European equities mostly a little higher; E-minis up 0.8%
- US 10-year yields flat at 0.88%
- Gold up 0.5% to $1,885.60
- WTI down 1.4% to $40.53
- Bitcoin up 1.0% to $16,315
It was a quiet session for the most part with equities creeping higher while major currencies did very little as investor appetite remains a key focus ahead of the weekend.
The rocky mood in risk continues as US futures gradually climbed during the session and that helped to see European indices post slight gains so far on the day.
Treasuries were little changed for the most part, so currencies didn't get much help from the bond market as we look towards North American trading now.
The dollar was more mixed with EUR/USD keeping just above 1.1800 as buyers pushed back above the 100-hour moving average, but gains aren't extending materially.
GBP/USD also inched higher from 1.3150 to 1.3187 but is still playing the range in between its key hourly moving averages around 1.3133 and 1.3194 currently.
USD/JPY also crept a little higher from 105.00 to 105.16 before running into near-term resistance from its 100-hour moving average and is down to 104.90 levels now.
Elsewhere, the kiwi is keeping a little weaker as buyers show more signs of exhaustion after the post-RBNZ push higher stalled closer to 0.6900 in the past few days.
Other than that, there is little change across the other major currencies.
Looking ahead, the market still seems to be digesting all the news this week. The back and forth action in risk sentiment is a clear reflection of the indecisiveness.
The election and vaccine euphoria were considerable factors early on in Monday trading but as the week progresses, investors are realising that it runs against the current backdrop of a worsening virus situation and further central bank easing to come.
And so the dance continues until the market decides if we have found a top based on the current trading range, or if dip buyers have the drive to beat the Monday high before the year comes to a close in about seven weeks.
