Dollar steady as risk mood holds up

Forex news from the European trading session – 3 February 2021

Headlines:

Markets:

AUD and NZD lead, GBP lags on the dayEuropean equities higher; E-minis up 0.3%US 10-year yields up 1.7 bps to 1.113%Gold flat at $1,837.65WTI up 0.8% to $55.18Bitcoin up 1.5% to $36,235

EOD 03-02
The market was more cautiously optimistic in European morning trade, with equities trimming early gains but keeping higher overall on the day.

The dollar held steadier throughout, with EUR/USD easing from 1.2040 to 1.2005 as sellers continue to inch towards a test of the 1.2000 handle.

USD/JPY was more sticky around 105.00 while GBP/USD slumped from 1.3660 to 1.3620 as the pound keeps lower amid some concerns on Brexit border checks.

UK Cabinet minister, Michael Gove, has written to the EU to request an extension of Brexit grace periods to 2023 at least this morning.

Elsewhere, NZD/USD pared its earlier pop from better Q4 unemployment data, easing from 0.7225 to 0.7190 before holding closer to 0.7200 currently.

Elsewhere, silver is catching a slight bid back above $27 now ahead of US trading with SLV having seen a record inflow of funds yesterday despite the drop in prices.

Over in Italy, Draghi has accepted the mandate to form a new government but will have to try and work out the differences between Lega and Five Star Movement parties. It remains to be seen if he can do so but the market is keeping hopeful.