Forex news from the European trading session - 5 January 2021
Headlines:
- EU reportedly negotiating for up to 300 million more Pfizer vaccine doses
- UK's Sunak: Will set out next stage of economic response in March
- UK announces further support for businesses to cushion blow from virus crisis
- Germany December unemployment change -37.0k vs 10.0k expected
- Switzerland December CPI -0.8% vs -0.7% y/y expected
- French health minister Véran: We cannot ease up on restrictions for now
- Germany November retail sales +1.9% vs -2.0% m/m expected
- German chancellor Merkel set to hold videoconference with state leaders today
- Germany reports 11,897 new coronavirus cases in latest update today
Markets:
- AUD leads, USD lags on the day
- European equities lower; E-minis down 0.1%
- US 10-year yields up 1.7 bps to 0.93%
- Gold up 0.3% to $1,948.60
- WTI up 1.9% to $48.53
- Bitcoin up 2.8% to $31,891
It was a largely quiet session as the market was more mixed in general in anticipation of the Georgia runoff elections and the OPEC+ meeting conclusion later today.
The dollar kept weaker throughout following a bit of an early tussle where it trimmed losses amid a slight retreat in risk sentiment to start the session.
The slight drop and then bounce early on was arguably the only real highlight of the session but even that was not significant or extensive by any stretch of the imagination.
European equities are now keeping lower with US futures also sticking close to little changed as we await Wall Street to enter the fray today.
EUR/USD moved up from 1.2260 to 1.2290 and is sticking in between that for now, holding a push above its 100-hour moving average. USD/JPY traded around 102.80-95 for the most part, not really doing much in European morning trade.
AUD/USD also kept above 0.7300 mostly but never really threatened its recent highs near 0.7740-42 as the highs today hit around 0.7725 on the session.
The pound is also keeping more subdued with cable easing from 1.3600 to 1.3554 before staying little changed around 1.3560-70 levels currently.
Elsewhere, gold is holding its advance to start the new year as price now trades towards $1,950 while oil prices are creeping higher after a stutter following the delay in the OPEC+ meeting conclusion from yesterday.
All eyes now turn to the Georgia runoffs so let's see how that will drive flows in the market as we start to get more settled into 2021 trading.
