Forex news from the European trading session - 10 June 2021
Headlines:
- ECB leaves key rates unchanged in June monetary policy meeting, as expected
- All good news on the crypto front so far today
- Basel Committee proposes first bespoke capital rules for cryptocurrency assets
- Dual reaction to the US CPI data release later?
- Treasury yields remain a focal point ahead of US CPI data release later today
- Germany reports 3,187 new coronavirus cases, 94 deaths in latest update today
Markets:
- AUD leads, GBP lags on the day
- European equities lower; S&P 500 futures flat
- US 10-year yields up 1.2 bps to 1.503%
- Gold down 0.6% to $1,877.56
- WTI up 0.1% to $70.04
- Bitcoin up 4.1% to $37,905
It was once again a quiet session as the market geared up for key risk events on the day with the ECB failing to really shake things up, sticking to expectations.
The central bank pledged to maintain "faster" PEPP purchases as compared to earlier in the year, while steering away from any kind of taper talk for the time being.
FX is little changed overall with equities also a little tepid as market participants wait on the US CPI data release later in the day. Dollar pairs are sitting within 0.1% change of each other now so that tells the story of trepidation at the moment.
Elsewhere, Treasury yields managed to move off lows bouncing off the 100-day moving average in 10-year yields to sit just above 1.50% currently.
All eyes will be on whether US inflation numbers later will help to jolt the market one way or another but watch out for a potential dual reaction to follow.