Forex news from the European trading session - 1 November 2021
Headlines:
- Yellen: Believes that inflationary pressures will ease
- UK October final manufacturing PMI 57.8 vs 57.7 prelim
- SNB total sight deposits w.e. 29 October CHF 717.1 bn vs CHF 715.3 bn prior
- Goldman Sachs brings forward their Fed rate hike timeline to July next year
- Germany September retail sales -2.5% vs +0.6% m/m expected
- Yellen: Believes that Biden will decide on Fed chair position 'reasonably soon'
- Japan PM Kishida: Full stimulus plan to be compiled by mid-November
- Yellen: US expects China to meet trade deal commitments
Markets:
- NZD leads, GBP lags on the day
- European equities higher; S&P 500 futures up 0.4%
- US 10-year yields up 2.6 bps to 1.582%
- Gold up 0.2% to $1,786.72
- WTI up 0.4% to $83.92
- Bitcoin down 0.7% to $61,958
It was a relatively calm and steady session overall with some light movements in the market to start the new week/month.
The dollar is keeping more mixed as it holds an advance against the yen and pound while slipping against the likes of the franc and kiwi notably.
EUR/USD hovered around 1.1550-60 for the most part before inching a little higher to 1.1575 but still sitting some way from key near-term resistance levels.
USD/JPY is holding on to gains but dropped from 114.40 earlier to 114.20. Meanwhile, cable eased from 1.3680 to 1.3643 before picking back up to around 1.3670 currently.
Elsewhere, AUD/USD flirted with a break below key near-term support under 0.7500 but crawled its way back up to 0.7510-15 now; still lower on the day though.
Equities are keeping relatively upbeat with US futures advancing and up roughly 0.4% while European indices are also extending higher with the Stoxx 600 at record highs.
The bond market is also seeing yields push higher though it is a more uniform one rather than the front-end exploding as we saw last week. That said, with central bank focus set to take over later this week, expect plenty of watchful eyes on yields.
Considering that we have the RBA, Fed, and BOE on the agenda in the next few days (not forgetting non-farm payrolls on Friday), things are surely going to heat up.
