Forex news from the European trading session - 13 October 2021
Headlines:
- US MBA mortgage applications w.e. 8 October +0.2% vs -6.9% prior
- China says that coal supply is guaranteed through this winter and next spring
- Eurozone August industrial production -1.6% vs -1.6% m/m expected
- UK pleads consumers not to panic buy for Christmas
- Germany September final CPI +4.1% vs +4.1% y/y prelim
- UK August monthly GDP +0.4% vs +0.5% m/m expected
- Japan PM Kishida says no comment on latest FX developments
- China calls steel mills in some cities to cut production over the next few months
Markets:
- CHF leads, USD lags on the day
- European equities mixed; S&P 500 futures up 0.2%
- US 10-year yields down 1.2 bps to 1.568%
- Gold up 0.8% to $1,773.61
- WTI down 0.9% to $79.92
- Bitcoin down 0.2% to $55,216
It was a quiet session for the most part as the market drifts around a little, with FX and bonds keeping with a bit of a similar mood from yesterday.
Treasury yields are looking rather tepid after the dip yesterday, seeing the dollar lightly pressured as a result but nothing too overwhelming.
USD/JPY is little changed though, sticking around 113.50-60 throughout after recovering from an early drop to 113.35 in Asia Pacific trading.
EUR/USD is up 0.3% to 1.1560 while GBP/USD is also holding gains above 1.3600 around 1.3620-30 during the session. Meanwhile, USD/CAD is keeping at the lows for the day around 1.2435 as sellers eye the July low @ 1.2422 even as oil prices retreat.
The overall risk mood is looking slightly better as compared to the tepid tones earlier with US futures mildly higher now but all eyes will be on US inflation data and the FOMC minutes release later in the day to provide firmer direction.
