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European Forex news roundup: Risk trades continue to follow the early jump

  • 29 November, 2021
  • 4:37 pm EET

European Forex news roundup: Risk trades continue to follow the early jump

Forex market news from the European trade session on November 29, 2021

 

After Friday’s massacre, risk trades are faring better to begin the new week as they cut some of last week’s big movements.

European indices are up about 1% after suffering their biggest slump in 17 months on Friday, while US futures are also doing better and steadily rising on the afternoon.

Bond yields are also improving the mood, with 10-year Treasury yields rising more than 6 basis points to slightly above 1.54 percent on the day.

All of this does not erase the decrease on Friday – not even close – but it does allow the market to breathe a little easier for the time being.

In forex, the EUR/USD is retracing some of the gains made at the close of last week, down 0.3 % to 1.1280-90, with the low earlier at 1.1260. On higher bond yields, the USD/JPY is slightly higher, trading around 113.40-60 in European morning trade.

The dollar is mixed in general, as it is marked lower against the loonie and the aussie while retaining a little rise against the kiwi.

The USD/CAD is being driven lower as oil prices recover slightly, with the pair hanging around 1.2730-40 levels for the majority of the day.

Meanwhile, the AUD/USD has maintained a strong rise around 0.7140-50 levels, as buyers continue to defend the August low of 0.7106.

Elsewhere, gold is lukewarm as the price is looking a little more sticky just around $1,800, while oil is up more than 5% to $71.67 on the day, trading back above its 200-day moving average, albeit this pales in comparison to the 13% drop on Friday.

 

Eurozone November final consumer confidence -6.8 vs -6.8 prelim :

Latest data released by Eurostat – 29 November 2021

  • Economic confidence 117.5
  • Prior 118.6
  • Industrial confidence 14.1
  • Prior 14.2
  • Services confidence 18.4
  • Prior 18.2; revised to 18.0

A small easing in economic confidence, which is consistent with the report’s projections. Supply constraints, increased inflationary pressures, and a worsening virus situation in Europe aren’t helping sentiment as the year comes to a close.

 

Markets News :

  • AUD leads, EUR lags on the day
  • European equities higher; S&P 500 futures up 0.7%
  • US 10-year yields up 6.2 bps to 1.546%
  • Gold up 0.1% to $1,792.81
  • WTI up 5.2% to $71.67
  • Bitcoin up 5.6% to $57,112

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