Forex news from the European trading session - 5 August 2021
Headlines:
- Key takeaways from the BOE policy meeting today
- BOE leaves bank rate unchanged at 0.10% as expected
- Major US automakers back goal of 40% to 50% EV sales by 2030
- UK July construction PMI 58.7 vs 66.3 prior
- Beijing to quarantine visitors from high-risk areas for 14 days
- Tokyo reports daily record of 5,042 new COVID-19 infections in the past day
- Germany July construction PMI 47.1 vs 47.0 prior
- Australia: Melbourne to go into seven-day lockdown
- Germany June factory orders +4.1% vs +1.9% m/m expected
Markets:
- AUD leads, USD lags on the day
- European equities mixed; US futures up 0.2%
- US 10-year yields down 1 bps to 1.172%
- Gold up 0.1% to $1,812.81
- WTI down 0.2% to $68.05
- Bitcoin down 4.6% to $37,913
Major currencies started off relatively quiet but are starting to move a bit more as we approach North American trading, with the dollar easing slightly after gains yesterday.
Risk sentiment is more mixed in Europe but US futures are keeping a slight advance, although Treasury yields are sitting a little lower on the day now.
EUR/USD moved up from 1.1835 to 1.1850 levels currently after holding a more subdued range on the session, though large expiries are likely to keep price action in-check.
USD/JPY surrendered earlier gains from 109.75 to 109.45 as yields slipped but also keep in mind of a large expiry at 109.50 for the pair rolling off later today.
Besides that, the greenback is marked lower against commodity currencies in particular. USD/CAD fell from 1.2530 to 1.2500 on the session while NZD/USD pulled up from 0.7050 to 0.7070 as buyers look to target key resistance closer to 0.7100.
The aussie is the lead gainer even as Victoria, Australia's second largest state, entered a fresh seven-day lockdown. AUD/USD moved up from 0.7390 to 0.7414 on the session as buyers look to try and work towards a daily close above 0.7400.
The BOE was the other key highlight of the session but no imminent changes to policy was announced. The central bank did lower its policy rate threshold to unwind QE from 1.50% to 0.50% but the pound is seeing little change overall for now.
GBP/USD had a bit of a whipsaw between 1.3905 to 1.3945 but is sticking around 1.3910-20 levels now with the dollar a touch on the softer side.
