Forex news from the European trading session - 26 July 2021
Headlines:
- BOE's Vlieghe: When tightening becomes appropriate, I suspect not much of it will be needed
- US reportedly says that talks with China saw a "healthy, professional" exchange of views
- Ifo economist says that supply problems are weighing on German economy
- Germany July Ifo business climate index 100.8 vs 102.1 expected
- SNB total sight deposits w.e. 23 July CHF 712.1 bn vs CHF 711.9 bn prior
- Treasury yields stay on the retreat to start European trading
- China says it has asked US to remove sanctions on Chinese leaders, officials
- Bitcoin buyers make a big stand, does that change anything on the charts?
Markets:
- GBP leads, USD lags on the day
- European equities slightly lower; S&P 500 futures -0.2%
- US 10-year yields down 4 bps to 1.246%
- Gold up 0.4% to $1,807.90
- WTI down 0.6% to $71.66
- Bitcoin up 11% to $38,500
It is shaping up to be a cautious start to the week, with the market keeping its focus on the FOMC meeting later to follow on Wednesday.
Equities are slightly on the defensive, with Treasury yields pulled lower but at least off earlier lows now going into North American trading.
10-year yields were dragged down to a low of 1.22% but is keeping around 1.24% to 1.25% now as the bid in bonds is holding up to start the new week.
That is helping to keep the yen more bid with USD/JPY down from 110.50 to 110.20 levels.
The dollar is trading more mixed as US real yields were dragged to an all-time low during the session, keeping some light pressure on the greenback.
EUR/USD moved up from 1.1775 to 1.1800 while GBP/USD moved up from 1.3750 to 1.3800 with commodity currencies also paring losses against the dollar.
The other key mover to start the new week is Bitcoin and price shoots up towards $40,000 but key technical resistance levels are still holding for now, so that is one to watch.
