Forex news from the European trading session - 26 August 2021
Headlines:
- Fed's George: Communication in September meeting will reflect discussions on taper
- ECB: New forward guidance did not necessarily imply “lower for longer” interest rates
- Eurozone July M3 money supply +7.6% vs +7.7% y/y expected
- China says will study targeted measures to cope with rising logistic costs
- Germany September GfK consumer confidence -1.2 vs -0.7 expected
- Japan says no major impact to vaccination schedule amid contamination issue
Markets:
- EUR leads, CHF lags on the day
- European equities lower; S&P 500 futures flat
- US 10-year yields up 0.8 bps to 1.353%
- Gold down 0.1% to $1,789.32
- WTI down 0.8% to $67.83
- Bitcoin down 3.7% to $46,910
FX was largely muted on the session as the dollar kept steadier amid some light pushing and pulling, not amounting to much change ahead of North American trading.
EUR/USD trades in a narrow range between 1.1760-70 while GBP/USD saw little action around 1.3740-50 levels on the session.
Commodity currencies are also little changed (only a touch softer), nothing to suggest any major change to price action over the past few days.
The overall risk mood was more tepid as European indices dial back following yesterday's gains while US futures are also not showing much poise amid some trepidation at record levels going into Jackson Hole tomorrow.
10-year Treasury yields are keeping its advance from yesterday, helping to see USD/JPY push to 110.20 before sticking closer to 110.00 currently.
As the week begins to wind down, the focus is turning to Jackson Hole tomorrow and there might not be much in it besides more pushing and pulling before the main event.
