Forex news from the European trading session - 16 July 2021
Headlines:
- Bitcoin faces a precarious end to the week
- Eurozone June final CPI +1.9% vs +1.9% y/y prelim
- US retail sales the key risk event on the day
- PBOC says will not set timetable for digital yuan rollout
- BOJ's Kuroda: Will not hesitate to take additional easing steps if necessary
- Western Germany floods reportedly claims 81 victims, more than 1,000 missing
Markets:
- NZD leads, JPY lags on the day
- European equities mixed; S&P 500 futures up 0.2%
- US 10-year yields up 2.5 bps to 1.322%
- Gold down 0.6% to $1,817.20
- WTI up 0.2% to $71.80
- Bitcoin down 1.8% to $31,179
It was a quiet session mostly with little change in the market as we await the US retail sales data release to provide the next catalyst for a move.
Equities were steadier, though gains were fleeting while Treasury yields are holding a little higher with 10-year yields off lows near 1.30% to keep around 1.32% to 1.33%.
In FX, the kiwi leads the charge and holds on to most of its early advance after the hot NZ CPI data in Asia Pacific trading. NZD/USD kept around 0.7000-20 for the most part, with the dollar also somewhat steady as it trades little change across the board.
EUR/USD stuck around 1.1790-10 within an 18 pips range but USD/JPY did inch a little higher from 110.00 to 110.20 as bond yields advanced slightly. That said, a lot still depends on the US retail sales report later in the day to see if the early move holds.
Other than that, the pound remains choppy as it bounces off support around 1.3800 to 1.3850 against the dollar, only to fall back again now to 1.3810-20.
All eyes are on the key risk event in US trading to perhaps give the market something to work with before the weekend comes.
