European Forex news roundup: Yen and dollar rise as pandemic concerns resurface
Forex market news from the European trade session on November 19, 2021
The pandemic isn’t ended, and we got a reminder of that today when Austria became one of the first few countries, if not the first, to reintroduce a statewide lockdown following months of reopening following the vaccine campaign.
The virus situation in Germany is also deteriorating, and health minister Spahn has upset markets even more by refusing to rule out resuming lockdown restrictions.
The headlines there had a significant impact on market sentiment today, which had been holding up very well at the start of European morning session.
European markets gave up early gains as US futures sank, before losses accelerated after some pushing and shoving in the previous hours.
Notably, the market’s risk aversion weighed heavily on bond yields, with 10-year Treasury yields falling 6.6 basis points on the day to 1.52 % , while 30-year German bund yields fell into negative territory for the first time since August.
As a result, the yen benefited the most alongside the dollar in the forex market.
USD/JPY fell from 114.50 to 113.90 before extending its decline to 113.61, where it is currently trading near the day’s lows.
Meanwhile, the euro has been hit the worst, with EUR/CHF breaking through major resistance around 1.0500 for the first time since 2015, and EUR/USD sliding from 1.1340 to 1.1280 during the session.
The dollar rose on a risk-off sentiment, with GBP/USD sliding from 1.3500 to 1.3410 before settling around 1.3420-30 levels.
In other news, USD/CAD rose from 1.2600 to 1.2660, while AUD/USD fell to its lowest level in over six weeks, falling from 0.7280 to 0.7230.
As pandemic fears reverberate, oil is among the largest losers on the day, down more than 3% to $76.36 after experiencing recent technical weariness as well.
Markets News :
- JPY leads, EUR lags on the day
- European equities lower; S&P 500 futures down 0.2%
- US 10-year yields down 6.6 bps to 1.520%
- Gold up 0.2% to $1,861.60
- WTI down 3.3% to $76.36
- Bitcoin down 0.6% to $58,000