European Forex news roundup: The Australian dollar maintains rises following a good jobs report.
Forex news from the European morning session on Jan 20, 2022
It was a mostly calm session, with few headlines and few important economic releases to work with.
The dollar is remaining somewhat mixed, but it was somewhat slow earlier on as risk trades benefited from a better performance in Asia following the PBOC’s rate cut earlier in the day. However, as the session went, the euphoria waned slightly, albeit equities are still slightly higher on the day.
Bond yields were little moved overall, but remained elevated, with 10-year Treasury yields hovering around 1.83 % .
The Australian dollar is the top gainer in FX after benefiting from a higher jobs data earlier in the day. This allowed the AUD/USD to trade in the 0.7230-40 range for the duration of the session.
Meanwhile, the kiwi is the laggard, with the AUD/NZD breaking out of its previous range since the end of December, pushing to 1.0700.
Elsewhere, major currencies are little changed, however the loonie is maintaining a small increase, with USD/CAD probing waters just below its 200-day moving average, under 1.2500.
It’s still primarily about the risk attitude, and while markets are recovering a little, there is still a sense of dread as we head into the final two days of the week.
The ECB reports reveal a schism in the inflation outlook :
- A number of policymakers argued that inflation was at risk of overshooting expectations
- It was cautioned that a “higher for longer” inflation scenario cannot be ruled out
- It was emphasised that ECB should stress willingness to adjust policy in either direction to stabilise inflation
- A growing number of policymakers fear that even if inflation is temporary, it may be more persistent and enough to spur wage growth and lift consumer price inflation above the long-term trend
Markets News :
- AUD leads, NZD lags on the day
- European equities mixed; S&P 500 futures up 0.3%
- US 10-year yields up 0.7 bps to 1.834%
- Gold flat at $1,841.10
- WTI down 0.9% to $85.27
- Bitcoin up 0.7% to $42,029