Forex news from the European trading session - 5 October 2021
Headlines:
- Yellen: It's up to Pelosi, Schumer to figure out how to raise debt limit
- ECB's Holzmann says clinging to hope that inflation spike is temporary
- Oil steady as buyers eye a bigger breakout to the topside
- Eurozone August PPI +1.1% vs +1.3% m/m expected
- UK September final services PMI 55.4 vs 54.6 prelim
- Eurozone September final services PMI 56.4 vs 56.3 prelim
- China's property market woes set to deepen further
- No change to RBA policy announced - as expected
Markets:
- NZD leads, JPY lags on the day
- European equities higher; S&P 500 futures up 0.5%
- US 10-year yields up 1.7 bps to 1.498%
- Gold down 0.8% to $1,756.43
- WTI up 1.0% to $78.40
- Bitcoin up 2.0% to $49,950
There weren't any major headlines on the session as markets struck a calmer and steadier tone in European morning trade for the most part.
After the selling in stocks and the dollar yesterday, there are some slight retracements in the two but less significant as opposed to yesterday's losses in general.
European indices are bouncing back nicely with US futures seen up around 0.5% at the moment, while the dollar held a slight advance early on only to see gains trimmed during the session and as we approach North American trading now.
EUR/USD is keeping steady around 1.1600 while USD/JPY saw some light moves around 111.00 to 111.20 but is keeping on the higher side now as Treasury yields are also posting a slight advance (also helped by the improved risk mood).
GBP/USD was down to 1.3590 earlier but has pushed up to 1.3640 as buyers held a defense of its 200-hour moving average, settling around 1.3620 at the moment.
Commodity currencies were also trailing against the dollar initially with the aussie and kiwi down 0.4% against the greenback at one point before recouping those losses and trading near flat levels on the day currently.
AUD/USD recovered from a low of 0.7250 to keep around 0.7270-80 while NZD/USD moved up from 0.693o to stick around 0.6960-70 levels.
Elsewhere, oil prices continue to look perky as Brent surges above $82 and WTI looks poised for a further run above $78 after the breakout yesterday.