ForexLive European morning FX news wrap: Markets nervous awaiting Powell


Forex news from the European trading session – 4 March 2021

Headlines:

Markets:

  • CAD leads, CHF lags on the day
  • European equities lower; E-minis down 0.5%
  • US 10-year yields down 0.9 bps to 1.472%
  • Gold up 0.2% to $1,715.10
  • WTI down 0.6% to $60.90
  • Bitcoin down 3.0% to $49,399

EOD 04-03
The market is looking tentative and cautious for the time being as all eyes stay on Fed chair Powell’s speech later on in the day at 1705 GMT.

The dollar kept steadier throughout as it managed to claw back losses against commodity currencies as equities continue to stay more nervous on the session.

US futures managed to briefly pare losses early on but are now trading back lower as the relative calm in the bond market hasn’t offered much reprieve.

The market is still largely waiting on Powell before really committing to any moves.

Going back to FX, EUR/USD is testing support from its 100-day moving average again @ 1.2038 with trendline support also seen at 1.2051 today.

USD/CAD is keeping steadier as oil prices – despite being down – are holding up for the most part going into the OPEC+ meeting at 1400 GMT later. The pair is sticking around 1.2630-50 with oil “only” down 0.6% to $60.90.

All eyes are on Powell today so let’s see whether or not he will be able to offer some relief to risk trades with US stocks on the verge of a potential breakdown.



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By Jonathan Prop

Jonathan Prop is an independent financial advisor. He has been working in finance for the last 20 years. After retiring early in his 40s, Jonathan decided to help others get to grip with financial markets, particularly his area of expertise - forex!

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