Comment from Centeno Imagine how popular the euro would be if it could ever sustain a bid and avoid some kind of crisis for a few years. It's up 55 pips today after a soft start to the year.
The USD is weaker As North American traders enter for the day - and return from the Martin Luther King holiday, the EUR is the strongest, the JPY is the weakest. The USD is also weaker as traders are in a risk off mode. Stocks are higher. Bond yields are higher as well. Gold is lower.
What's driving today's upbeat sentiment A lot of the chatter out there is that risk assets are trading back up on the positive updates around coronavirus, mainly that US covid cases fell for the sixth consecutive day. But we think it's more about Janet Yellen and the expectations around her confirmation hearing.
Forex news from the European trading session - 19 January 2021 Headlines: Markets: - EUR leads, JPY lags on the day - European equities mixed, a little higher; E-minis up 0.7%
WSJ reports on the matter, citing a review of the text of Yellen's remarks to the Senate Finance Committee The also adds that Yellen is to affirm the US' commitment to market-determined exchange rates, making it clear that they are not seeking a weaker dollar for competitive advantage, according to officials familiar with her hearing
Gold continues to be caught in a battle around key technical levels Gold is trading back towards its 100-hour moving average (red line) as buyers wrestle back some near-term control. However, that doesn't mean all too much considering that price action appears to be stuck in a consolidation phase between $1,830 and $1,860.
The euro advances after the German ZEW survey data shows that investor sentiment continues to override lockdown pessimism key technical support levels Of note, the push higher during the session has also seen buyers take out the near-term trendline resistance in the latest swing move lower and now contesting a potential break of the 23.6 retracement level
Does the early reflation narrative have more legs to run to start the year? The Georgia runoffs, Fed talk, and Biden's stimulus plan were key components to get the market hyped up about the reflation narrative to start the new year but have we finally run out of fuel on that front - at least for
Bitcoin beats out long tech and short dollar trades I reckon this reflects the amount of bullishness in terms of investor risk-taking behaviour. While Bitcoin may have been the flavour of the week/month, the standout point to me is that cash levels have dropped to the lowest in almost 8 years.
Latest data released by ZEW - 19 January 2021 This reflects the more optimistic investor sentiment as well but we'll see how well this will hold up in light of restrictions set to be prolonged further to April in all likelihood.