Forex news from the European trading session - 6 August 2021
Headlines:
- BOE's Broadbent: We do think the factors behind inflation will prove temporary
- Tokyo reports 4,515 new daily COVID-19 infections
- France June trade balance -€5.82 billion vs -€6.80 billion prior
- UK July Halifax house prices +0.4% vs +0.8% m/m expected
- Germany June industrial production -1.3% vs +0.5% m/m expected
Markets:
- CAD leads, EUR lags on the day
- European equities slightly higher; S&P 500 futures up 0.1%
- US 10-year yields up 3.8 bps to 1.255%
- Gold down 0.3% to $1,798.15
- WTI up 1.4% to $70.08
- Bitcoin down 0.5% to $40,675
It was a quiet session in European morning trade as it served to be more of a placeholder before we get to the main event later today i.e. US non-farm payrolls.
The dollar kept steadier throughout as major currencies stuck in narrower ranges, though the euro did ease a little on the session.
EUR/USD fell from 1.1825 to 1.1800 with EUR/GBP pushing to fresh lows in four months as the pair carries over the downside momentum below 0.8500 yesterday to 0.8480.
Elsewhere, dollar pairs are relatively little changed with GBP/USD holding just above 1.3900 and USD/JPY hugging levels close to 109.80 for the time being.
AUD/USD is a touch lower as it keeps around 0.7380-90 since Asia Pacific trading.
Equities are more tentative awaiting the jobs report while Treasury yields are keeping a bounce from earlier in the week, with 10-year yields rising nearly 4 bps to above 1.25%.
In the commodities space, gold is languishing just below the $1,800 mark while oil is picking up a bounce in a climb back towards $70, up by 1.4% on the day.