Forex news from the European trading session - 15 November 2021
Headlines:
- Biden-Xi meeting is not one "where we expect deliverables to be coming out" - US official
- ECB's Lagarde: We still see inflation moderating in the next year
- Eurozone September trade balance €6.1 billion vs €11.1 billion prior
- SNB total sight deposits w.e. 12 November CHF 719.2 bn vs CHF 718.4 bn prior
- Deutsche Bank CEO calls on central banks to fight inflation
- Treasury yields cool off after jump higher last week
- BOJ's Kuroda: Even if Japan CPI hits 1% next year, BOJ won't abandon easy monetary policy
- BOJ's Kuroda: A weak yen not a negative for Japan's economy
Markets:
- AUD leads, EUR lags on the day
- European equities a little higher; S&P 500 futures up 0.2%
- US 10-year yields down 2.4 bps to 1.559%
- Gold down 0.2% to $1,860.70
- WTI down 1.3% to $79.77
- Bitcoin up 2.7% to $65,810
The post-CPI moves from last week are taking a bit more of a breather as dollar gains are cooling off and bond yields are also retreating slightly to start the new week.
The greenback is little changed in general but is modestly softer against the aussie and kiwi as the antipodeans bounce back a little after a poor November showing thus far.
AUD/USD gradually moved up from 0.7350 to 0.7370 while NZD/USD nudged a little higher from 0.7060 to 0.7080, with the former running into a test of its 100-day moving average @ 0.7365 - a key level to watch in the sessions ahead.
Besides that, the dollar is nearly flat against the euro and yen while cable inched a slight gain as it moved up from 1.3420 to 1.3430 levels on the session.
Meanwhile, bond yields are pulling back a little from the highs last week as the market continues to digest and wait on clues on the inflation debate.
Elsewhere, equities are not letting up with European indices gradually pushing higher with the Stoxx 600 and CAC 40 indices touching fresh all-time highs.
US futures are also pointing to light gains now after a more tepid start earlier in the day.
There's still much to tinker and ponder on the week but the lack of key economic releases won't help with that. As such, expect trading sentiment to revolve around the ebb and flow (and technicals) with Fedspeak arguably the big thing to focus on.
