Forex news from the European trading session - 25 October 2021
Headlines:
- Facebook reportedly losing popularity among teens, highlighting a troubling trend
- Bundesbank says German economic growth to slow significantly in Q4
- ECB's de Cos: We will likely observe relatively high inflation in the coming months
- Ifo says supply chain problems are causing production capacities to fall
- SNB total sight deposits w.e. 22 October CHF 715.3 bn vs CHF 714.3 bn prior
- Germany October Ifo business climate index 97.7 vs 97.9 expected
- Oil continues its good form to start the new week
- China says will probe coal, energy price index providers
Markets:
- AUD leads, EUR and CHF lag on the day
- European equities mostly a little higher; S&P 500 futures up 0.1%
- US 10-year yields flat at 1.654%
- Gold up 0.5% to $1,800.30
- WTI up 1.1% to $84.70
- Bitcoin up 3.4% to $62,781
It was a quiet and steady session for the most part as we ease into the new trading week.
Equities kept steadier and little changed, with key tech earnings still to follow in the days ahead for Wall Street. Facebook shares did take a slight knock in pre-market after a report highlighting its waning popularity among teens.
Meanwhile, the bond market is also less enthused for now as we gear towards key central bank meetings later in the week (BOC, BOJ, ECB).
In FX, the dollar and yen were mildly softer earlier on but the greenback managed to recoup some ground in a mixed session for the most part.
EUR/USD slumped from 1.1660 to 1.1605 and is hovering at the lows now as the euro turns to be the laggard on the day currently.
GBP/USD also pared an early advance from 1.3690 to 1.3750 and is keeping thereabouts.
USD/JPY held steadier throughout around 113.60-70 levels with little to really work with.
Elsewhere, USD/CAD maintained a tight range around 1.2350-70 after recovering from an earlier dip to 1.2340. AUD/USD is still maintaining gains for the most part around 0.7280-90 levels after a brief test of 0.7500 at the start of the day.
Looking to commodities, gold is also starting to come to life as buyers drive price up to test $1,800 while oil is still looking perky in a 1% advance to $84.70 currently.
