Forex news from the European trading session - 10 November 2021
Headlines:
- US MBA mortgage applications w.e. 5 November +5.5% vs -3.3% prior
- Some Evergrande bond holders said to not have received payment as of Asia business close today
- Reminder: It is a US holiday tomorrow
- Germany October final CPI +4.5% vs +4.5% y/y prelim
- China's Evergrande has $148 million in coupons payment due today
Markets:
- USD leads, NZD lags on the day
- European equities mixed; S&P 500 futures down 0.3%
- US 10-year yields up 2.7 bps to 1.476%
- Gold down 0.4% to $1,824.70
- WTI down 0.8% to $83.47
- Bitcoin down 1.6% to $66,605
It was a quiet session in terms of headlines as the market prepares itself for the US inflation data to come later at 1330 GMT.
The dollar firmed across the board with risk trades rocking back and forth a little, as equities erased its early decline from Asia only to fall back again.
US futures were down 0.3% initially before paring that drop but are now lower across the board again with tech stocks leading the decline in pre-market. S&P 500 futures are down 0.3%, Nasdaq futures down 0.5%, and Dow futures down 0.2%.
Elsewhere, bond yields crept a little higher after yesterday's drop with the market keeping some calm ahead of the key risk event later today.
The greenback advanced across the board in the FX space with EUR/USD falling from 1.1580 to 1.1545 as sellers seize back near-term control, eyeing daily support @ 1.1525-29.
USD/JPY also moved up from 112.90 to 113.25 while GBP/USD slumps further after the drop yesterday from 1.3550 to 1.3490 on the session.
The antipodeans also didn't fare too well amid the more cautious risk mood, with AUD/USD keeping at the lows around 0.7350-60 levels while NZD/USD is dipping its toes below the 0.7100 mark throughout European trading.
The US CPI report later isn't going to be a game changer in the inflation debate but any surprise misses/beats could see the market get a brief jolt (I'd argue to fade that) before we settle ahead of the partial US market holiday tomorrow.
