ForexLive European FX news wrap: US Senate passes tax bill vote, Bitcoin rebounds from early plunge

Author: Justin Low | Category: News

Forex news from European trading - 20 December 2017

Economic data:

Central banks/Governments:




  • CAD, AUD leads the way, CHF the laggard so far
  • European equities mostly lower on the day
  • Gold is up by 0.31% to $1,265.65
  • WTI crude is up by 0.38% to $57.77
  • US 10-year yields flat at 2.47%
  • Bitcoin higher by 4% on the day to $17,675

It's been a quiet day in the FX market, as most traders were probably looking at the Bitcoin chart during the first half of the session. Most major pairs stayed range-bound, with only cable attempting to break the stigma by testing the 1.3400 level for a break. But sellers prevailed, and the pair is now at 1.3395 - still eyeing for that 1.3400 level.

Apart from that, dollar remains mixed as it is higher against safe haven pairs of JPY and CHF - as 10-year yields seem to be holding its ground at 2.47%. Earlier in the day, the US Senate got enough votes to pass the tax bill, so we're now awaiting the House to pass their final version and it's a done deal. Oh, and Trump has a press conference due once that happens too!

NZD rebounded after a slow start to the day, while the AUD and CAD also inched higher against the USD.

The EUR got a bit of a late scare as the EU commission initiated Article 7.1 against Poland in an unprecedented move. But the currency is still holding firm after a minor drop.

All the action has been in the cryptocurrency world, where we saw bitcoin parred losses following a drop early in the day. The drop was caused by Coinbase's announcement to offer up bitcoin cash in its trading - but then it encountered some problems as an investigation is now being conducted for insider trading that messed with the order book. Bitcoin cash at one point hit $9,500 on Coinbase's GDAX exchange - much higher than the $3,400-$3,500 on other exchanges.

Bitcoin plunged to below $16,000 but then has since recovered as it is now gunning for the $18,000 mark.

Also, Litecoin's founder decided to sell all his holdings of LTC - Litecoin's currency. Litecoin holds the fifth biggest market cap in the cryptocurrency space, and is trading higher by almost 7,000% this year.

All in all, a quiet day if you're a FX trader - but not short of action when you add cryptocurrencies into the basket.