Forex news from the European trading session - 5 February 2021
Headlines:
- Senate adopts budget measure to fast-track Biden's $1.9 trillion stimulus plan
- UK government confirms local elections will go ahead on 6 May this year
- BOE's Broadbent: QE not necessarily the first choice for stimulus
- UK January Halifax house prices -0.3% vs +0.3% m/m expected
- Germany December factory orders -1.9% vs -1.0% m/m expected
- AstraZeneca says that it has applied for vaccine approval in Japan
- Germany reports 12,908 new coronaviruss cases, 855 deaths in latest update today
- BOJ's Kuroda: Stock prices reflect perceptions on economic outlook, corporate profits
Markets:
- CAD leads, NZD lags on the day
- European equities higher; E-minis up 0.5%
- US 10-year yields up 1.9 bps to 1.158%
- Gold up 0.5% to $1,802.62
- WTI up 1.0% to $56.80
- Bitcoin up 0.2% to $37,723
It was a relatively quiet session we count down to the non-farm payrolls report to wrap things up on the trading week.
The dollar gave back some gains on the week as it runs into key support in EUR/USD and key resistance in USD/JPY at around 1.1967-76 and 105.58-65 respectively.
Equities kept firmer, carrying on the positive momentum from yesterday as Treasury yields also continued to march higher on the session.
The news that the Senate has passed the budget measure (Kamala Harris breaking the tie) to fast-track Biden's stimulus plan is also welcome news for risk sentiment in general.
EUR/USD rose from 1.1970 to 1.1988, with USD/JPY initially falling off from 105.60 to 105.34 before bouncing back to 105.60 levels now as yields climb.
AUD/USD also kept a slight advance from 0.7600 to 0.7627 before paring most of that. Meanwhile, the loonie stays underpinned on higher oil prices as USD/CAD eased from 1.2820 to around 1.2800 now ahead of North American trading.
The non-farm payrolls report is one of the key focus points ahead of the weekend but it is likely to act as a general risk barometer if anything else i.e. either providing the market with a reason to extend gains or to engage in some profit-taking.
