Forex news from the European trading session - 18 November 2020
Headlines:
- US MBA mortgage applications w.e. 13 November -0.3% vs -0.5% prior
- Pfizer says have achieved safety data milestone required by FDA, vaccine efficacy 95% in final analysis
- BOE's Haldane: UK economy surpassed expectations in Q3
- Eurozone October final core CPI +0.2% vs +0.2% y/y prelim
- EU states reportedly to get update on Brexit talks at 0700 GMT on Friday
- Japan reports record 1,742 new coronavirus cases in latest update today
- UK October CPI +0.7% vs +0.5% y/y expected
- Germany reports 17,561 new coronavirus cases in latest update today
Markets:
- NZD leads, USD lags on the day
- European equities higher; E-minis up 0.4%
- US 10-year yields up 1 bps to 0.868%
- Gold down 0.5% to $1,871.80
- WTI up 2.3% to $42.36
- Bitcoin up 3.2% to $18,206
The market got another late push in European morning trade as Pfizer attempts to one up Moderna with an update to their vaccine announcement last week.
Pfizer managed to pass the safety milestone needed to apply for emergency-use approval but also claimed that its vaccine efficacy was 95% upon final analysis.
That gave equities a modest boost in latter stages of the session, with the gains being less impactful than the previous two vaccine jumps last week and earlier this Monday.
European equities opened lower before gradually paring losses during the session, but moved up to post roughly 0.4% to 0.6% gains upon the Pfizer news.
Dow futures also climbed up to gain by 0.5% while S&P 500 futures held gains of around 0.3% to 0.4% for the most part, after having recovered from lows earlier in the day.
In the currencies space, things were little changed on the news as the dollar continues to struggle on the week. EUR/USD pushed up to 1.1891 but is now trading little changed around 1.1860 levels as 1.1900 remains an elusive target for buyers.
The dollar held on to most key technical levels throughout the session, so that is helping to keep any momentum breaks in-check for the time being.
USD/JPY did ease from 104.00 to 103.79 but is now trading just under the figure level ahead of North American trading.
Cable failed to contest its highs last week in a move from 1.3260 to 1.3297 before gains ease towards 1.3270-80 levels now.
AUD/USD pushed higher from 0.7280 to 0.7320 but buyers are also still finding it tough to crack last week's high of 0.7340 at the moment.
Elsewhere, Bitcoin saw a sharp drop in the early stages of the session from $18,400 to $17,257 but dip buyers quickly turned that around on a push back above $18,000 for now.
It is still all about the push and pull in the market, with the dollar still pretty much bending but not breaking. So, let's see what the next twist or turn has to offer.