ForexLive European FX news wrap: Kiwi stays buoyed, dollar sluggish

Forex news from the European trading session - 18 November 2021

Headlines:

Markets:

• NZD leads, JPY lags on the day
• European equities mixed; S&P 500 futures up 0.3%
• US 10-year yields down 1 bps to 1.594%
• Gold down 0.1% to $1,865.51
• WTI down 0.8% to $77.76
• Bitcoin down 1.4% to $59,274

It was a session bereft of key headlines with a lack of economic releases as well in Europe. The dollar drifted for the most part but is keeping slightly lower on the balance of things, as gains in the past week continued to cool off.

EUR/USD nudged a little higher from 1.1330 to 1.1345 while GBP/USD kept largely steady around 1.3480-90 levels with little for traders to work with on the session.

US futures ticked higher and that is seeing the overall risk mood keep a fair bit buoyed even if European indices are looking more mixed, though the DAX and CAC 40 did briefly clip fresh record highs early on at the start of trading.

The yen is accompanying the greenback as the laggard with USD/JPY holding around 114.00-20 amid large option expiries and with reports that Japan is set to unleash a massive amount of fiscal stimulus tomorrow to aid the economic recovery.

The sluggishness in the dollar is more evident against the aussie and kiwi with AUD/USD moving up from 0.7260 to 0.7290 while NZD/USD is pushing gains of nearly 0.7% from 0.7020 to 0.7050 during European morning trade.

The kiwi is buoyed by strong NZ inflation expectations earlier in the day and also a continued shove lower in AUD/NZD as sellers look towards 1.0300.

Elsewhere, oil is also marked lower amid SPR sale anxiety as well as the continued technical exhaustion over the past few weeks, down 0.8% to $77.76.

US weekly jobless claims is up next on the agenda but that aside, trading sentiment is still going to largely revolve around the ebb and flow ahead of the weekend.

November 19, 2021 at 12:51AM
Justin Low
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