European Forex news roundup: Dollar rally cools, but pound rises on UK inflation beat
Forex market news from the European trade session on November 17, 2021
For the most part, it was a quiet and steady afternoon, with the dollar’s early gains cooling and equities and bonds showing little interest.
The pound rose slightly as UK inflation data topped expectations, paving the way for the Bank of England to raise interest rates next month.
GBP/USD rose from 1.3435 to 1.3470 on the report before settling around 1.3450 levels currently, as the dollar has been more sluggish overall. The EUR/GBP dipped to just below 0.8400 when the data was released, but it is presently trading in the 0.8400-10 range.
When it comes to dollar sentiment, the greenback is still in a favorable situation technically, but its early momentum has slowed. In European morning trade, EUR/USD rose from 1.1290 (low today was 1.1265 in Asia) to 1.1320, while USD/JPY fell from 114.90 to 114.70.
The Aussie is a major laggard, though, as the AUD/NZD pair begins to regain some negative momentum, with sellers targeting 1.0300.
It appears that dollar bulls are taking a pause, since stocks and bond rates are also lagging, but we’ll see whether things bounce up heading into US trade, as they have in recent days.
ECB’s Rehn: Euro area inflation will ease next year
ECB policymaker, Olli Rehn, remarks in an interview
- Inflation accelerating on energy, supply crunch
- Inflation not showing up in wages yet
Markets News :
- GBP leads, AUD lags on the day
- European equities mixed; S&P 500 futures flat
- US 10-year yields up 0.7 bps to 1.64%
- Gold up 0.7% to $1,863.01
- WTI down 0.5% to $80.34
- Bitcoin up 0.2% to $59,580