Foreign exchange information from the European buying and selling session – 23 February 2021

Headlines:

Markets:

  • GBP leads, CHF lags on the day
  • European equities decrease; S&P 500 futures -0.4%, Nasdaq futures -1.4%
  • US 10-year yields flat at 1.363%
  • Gold flat at $1,810
  • WTI up 0.7% to $62.15
  • Bitcoin down 16% to $46,165

EOD 23-02
Equities are taking a little bit of a knock, although we’re seeing a number of that play out within the tech area as Nasdaq futures have been despatched down by as a lot as 2% through the session – with traders ready on Fed chair Powell’s testimony for extra clues later immediately.

The selloff has eased a bit however US futures are nonetheless pointing to a softer opening, though Dow futures are holding on comparatively properly close to flat ranges. That continues to level in the direction of a rotation play from progress to worth, which is a part of the massive image narrative maybe.

Elsewhere, the bond market stored calmer all through however the greenback held steadier after some shakiness early on because the foreign money benefited from the softer danger temper.

The strikes have been modest as EUR/USD fell from 1.2175 to 1.2145 whereas AUD/USD erased positive aspects from 0.7930 to 0.7890 earlier than protecting nearer to 0.7900 at present.

In the meantime, USD/CAD additionally inched up from 1.2590 to 1.2615-20 through the session.

The pound although is extra resilient as cable caught round 1.4080-90 ranges all through with the franc lagging as EUR/CHF breaks to its highest ranges since December 2019.

Wanting over to commodities, gold stays regular simply above $1,800 whereas oil held on to most of its positive aspects above $62 however faces key resistance ranges forward of the month-end.

Over to crypto, it’s wanting like a massacre as Bitcoin plunges additional in a drop to only below $45,000, as a lot as 18%, on the lows with altcoins additionally following go well with.

All eyes shall be on Powell subsequent however he’s unlikely to shake up the established order immediately. So, let’s examine how the market takes to that given the newest stumble in shares.