Forex news from the European trading session - 23 April 2021
Headlines:
- Bitcoin trims declines to move back above $50,000
- ECB policymakers reportedly split on decision to start easing PEPP purchases
- UK April flash services PMI 60.1 vs 58.9 expected
- ECB and other major central banks to discontinue 84-day dollar liquidity operations
- Eurozone April flash services PMI 50.3 vs 49.1 expected
- Bitcoin extends slump to 7% in fall to $48,000
- Germany April flash manufacturing PMI 66.4 vs 65.8 expected
- France April flash services PMI 50.4 vs 46.7 expected
- UK March retail sales +5.4% vs +1.5% m/m expected
- Germany reports 27,543 new coronavirus cases, 265 deaths in latest update today
Markets:
- AUD leads, USD lags on the day
- European equities lower; S&P 500 futures up 0.2%
- US 10-year yields up 0.9 bps to 1.547%
- Gold up 0.4% to $1,790.79
- WTI up 0.5% to $61.72
- Bitcoin down 3% to $50,045
It was a relatively quiet session with light movements all around, though the plunge and bounce in cryptocurrencies kept things more interesting.
Euro area PMI data produced some positive beats all around and that is a welcome development as the economy holds up to start Q2 despite the virus situation.
European equities held lower though, playing catch up to the declines in US stocks yesterday, with US futures seen slightly higher ahead of North American trading.
The dollar held weaker throughout but losses are still rather limited with EUR/USD testing waters just above its 100-day moving average at 1.2050-60 levels but not really chasing any firm breaks during the session.
GBP/USD held a modest advance from 1.3860 to 1.3890 but buyers still lack any meaningful conviction to push back above 1.3900 despite upbeat UK retail sales and PMI data.
Meanwhile, USD/CAD continues to try and stick with the post-BOC momentum as it lingers around 1.2470-90 though daily support at 1.2476-00 is still holding up.
The aussie leads gains as AUD/USD rises from 0.7720 to 0.7745 but gains have stalled at the 100-hour moving average for the time being.
Elsewhere, cryptocurrencies saw a wild session as Bitcoin slumped by nearly 8% from $50,000 at the tail-end of Asian trading to $47,465 before finding a bounce now to move back just above $50,000 as buyers seek to defend the 100-day moving average.
