Forex news from the European trading session - 3 September 2021
Headlines:
- PBOC says will keep prudent monetary policy flexible, targeted and appropriate
- TSE reportedly to extend trading hours by 30 minutes in 3 years' time
- Eurozone July retail sales -2.3% vs +0.1% m/m expected
- UK August final services PMI 55.0 vs 55.5 prelim
- Eurozone August final services PMI 59.0 vs 59.7 prelim
- Japanese stocks look to break out of range as Suga steps down as prime minister
- Japan PM Suga says that he wants to focus on coronavirus measures
Markets:
- AUD leads, CHF lags on the day
- European equities mixed; S&P 500 futures up 0.2%
- US 10-year yields flat at 1.295%
- Gold up 0.2% to $1,814.84
- WTI up 0.2% to $70.12
- Bitcoin up 0.6% to $49,844
It was a quiet one in Europe as markets geared towards the US non-farm payrolls release later in the day at 1230 GMT.
In Asia, Japan prime minister, Yoshihide Suga, announced that he is stepping down after nearly a year into his premiership, prompting Japanese stocks to rise sharply and break out of range as seen since March this year.
That didn't quite translate to much although US futures keeping higher is helping to see risk sentiment more optimistic ahead of the main event later today.
The aussie and kiwi are the only two notable movers in the major currencies space, with AUD/USD extending a push from 0.7400 to 0.7439 as buyers stay in the hunt of a potential technical break towards 0.7500.
Meanwhile, NZD/USD is taking a peek above its 200-day moving average at 0.7113 as buyers look to extend the upside run over the past two weeks.
That said, the moves above still hinges on what we will be getting from the US non-farm payrolls release later in the day.
Besides that, other dollar pairs are largely keeping in narrow ranges as traders wait on clues from the US jobs report and what that offers to the Fed taper narrative.
