Forex news from the European trading session – 18 May 2021
- NZD leads, USD lags on the day
- European equities a little higher; S&P 500 futures up 0.2%
- US 10-year yields down 1 bps to 1.638%
- Gold up 0.2% to $1,869.98
- WTI up 0.5% to $66.58
- Bitcoin up 1.9% to $45,641
It was a quiet session for the most part as risk held steadier, though European indices have pared back some of its earlier gains to keep just a little higher.
US futures remain optimistic as the dollar slumped across the board and trades to nearly its lowest levels for the year, building from the drop since last Friday.
The technicals are not really in the dollar’s favour as well with EUR/USD looking to crack above 1.2200, though the 25 February high @ 1.2243 is still in play.
GBP/USD also looks to be breaking out but needs to secure a firm break above 1.4200 with the 24 February high @ 1.4241 one to watch in trading this week.
USD/CAD is inching towards the 1.2000 level as it falls to its lowest levels for the year, taking out the September 2017 low @ 1.2055.
Meanwhile, AUD/USD is flirting with a push back above 0.7800 after buyers held on to the 100-day moving average in trading last week.
While inflation is still the key issue in the market right now, it doesn’t mean one should discount the basics of the market and at the moment, technicals and risk sentiment are also key drivers – especially for the dollar.