Forex news from the European morning session – 23 March 2021

Headlines:

Markets:

  • JPY leads, NZD lags on the day
  • European equities lower; S&P 500 futures down 0.3%
  • US 10-year yields down 5.6 bps to 1.638%
  • Gold up 0.1% to $1,740.70
  • WTI down 3.6% to $59.35
  • Bitcoin up 0.3% to $54,699

EOD 23-03
It is a bit of a messy day in the market with some hints of risk aversion being observed, more prominent in some areas and less so in others.

FX was a one of the major hotspots as the kiwi extended losses from Asian trading, with NZD/USD slumping by nearly 2% at the lows in a fall from 0.7090 to 0.7025 – building on the declines in Asia where it fell below 0.7100.

The dragged the aussie along with it as AUD/USD fell from 0.7700 to 0.7656, trading at two-week lows ahead of the North American session.

Treasury yields were seen on the retreat, in some part perhaps due to haven flows, and European equities are also marked lower – feeling some uneasiness from Turkey still.

The dollar and yen kept firmer as such, with USD/JPY itself seen falling from 108.70 to 108.41 – keeping the yen in pole position on the day.

EUR/USD fell from 1.1910 to 1.1877 while GBP/USD slumped from 1.3850 to 1.3752 before bouncing off daily support to stick around 1.3790.

Elsewhere, oil is also a key mover on the day as prices slumped by 5% at the lows in a fall to $58.47 before rebounding off support at $58.59 to be back above $59.00 now.

The contango turned negative for the first time since January, signaling some oversupply worries, so that may have been a key trigger in dragging prices lower.

Other than that, US futures kept slightly lower but nothing too overwhelming while gold is little changed on the day while Bitcoin rebounds after a $1,000 plunge earlier.

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