Forex news from the European trading session - 15 March 2021
Headlines:
- Welcome to Fed week
- Bitcoin extends pullback from record high over the weekend
- SNB total sight deposits w.e. 12 march CHF 702.8 bn vs CHF 703.1 bn prior
- Germany says will continue to use AstraZeneca vaccine
- BOE's Bailey: We will need to see evidence that the trend in inflation is sustainable
- A real ugly start to the week for Chinese stocks
- Austrian health minister sees start of third virus wave in the country
- Germany reports 6,604 new coronavirus cases, 47 deaths in latest update today
Markets:
- NZD leads, AUD lags on the day
- European equities higher; E-minis up 0.3%
- US 10-year yields flat at 1.625%
- Gold up 0.2% to $1,730
- WTI down 0.1% to $65.54
- Bitcoin down 6.6% to $56,300
The session began with some hints of nervousness as Chinese equities sold off before a light recovery in the final half-hour, but still ended up down heavily on the day.
That saw risk trades pull back a little before quickly finding its footing and rebounding during European morning trade. The steadiness basically stuck as the main theme across all asset classes with little major movements outside of the pullback in Bitcoin to $55,000.
US futures bounced back up to keep slightly higher and that saw the dollar trim early gains but still keeping relatively steady on the session.
EUR/USD fell from 1.1950 to 1.1918 with the euro struggling on some concerns that a third virus wave is coming, as price sticks to its 100-hour moving average now.
GBP/USD fell from 1.3925 to 1.3900 but found support from its 200-hour moving average before holding close to unchanged levels currently. Meanwhile, USD/JPY advanced to a 9-month high of 109.36 and is keeping just below that around 109.10-20 levels.
The aussie is the weakest performer on AUD/NZD selling as flows are dominating proceedings in the aussie and kiwi to start the new week, though the moves are light.
Treasuries are looking more steady in general and that is also helping to keep the calm in the market as the focus stays on the FOMC meeting later this week.
Bitcoin hit a record high near $62,000 over the weekend but has quickly retraced that surge in a 9% drop at one point just under $55,000 earlier - sticking to its volatile nature.
