Forex news from the European trading session - 4 March 2021
Headlines:
- All options still on the table as OPEC+ keeps the market guessing
- Is the market expecting too much from Powell today?
- Eurozone January retail sales -5.9% vs -1.4% m/m expected
- UK February construction PMI 53.3 vs 51.0 expected
- It is make or break time for US equities
- Nikkei 225 closes lower by 2.13% at 28,930.11
- Germany reports 11,912 new coronavirus cases, 359 deaths in latest update today
Markets:
- CAD leads, CHF lags on the day
- European equities lower; E-minis down 0.5%
- US 10-year yields down 0.9 bps to 1.472%
- Gold up 0.2% to $1,715.10
- WTI down 0.6% to $60.90
- Bitcoin down 3.0% to $49,399
The market is looking tentative and cautious for the time being as all eyes stay on Fed chair Powell's speech later on in the day at 1705 GMT.
The dollar kept steadier throughout as it managed to claw back losses against commodity currencies as equities continue to stay more nervous on the session.
US futures managed to briefly pare losses early on but are now trading back lower as the relative calm in the bond market hasn't offered much reprieve.
The market is still largely waiting on Powell before really committing to any moves.
Going back to FX, EUR/USD is testing support from its 100-day moving average again @ 1.2038 with trendline support also seen at 1.2051 today.
USD/CAD is keeping steadier as oil prices - despite being down - are holding up for the most part going into the OPEC+ meeting at 1400 GMT later. The pair is sticking around 1.2630-50 with oil "only" down 0.6% to $60.90.
All eyes are on Powell today so let's see whether or not he will be able to offer some relief to risk trades with US stocks on the verge of a potential breakdown.
