Forex news from the European trading session - 7 September 2021
Headlines:
- Latest poll shows support for German conservatives waning further
- Germany September ZEW survey current conditions 31.9 vs 34.0 expected
- Treasury yields pull higher after the long weekend
- BOE's Saunders: We no longer need as much stimulus as previously
- Japanese stocks continue breakout form from Friday
- UK August Halifax house prices +0.7% vs +0.4% m/m expected
- Germany July industrial production +1.0% vs +0.7% m/m expected
- The RBA tries to make the most of a bad situation
- Full statement from the RBA September monetary policy meeting decision
- RBA leaves cash rate unchanged at 0.10% in September monetary policy decision
Markets:
- USD leads, AUD lags on the day
- European equities lower; S&P 500 futures flat
- US 10-year yields up 4.3 bps to 1.365%
- Gold down 0.8% to $1,809.10
- WTI down 1.2% to $68.45
- Bitcoin down 1.8% to $50,991
The market is looking a bit livelier in European morning trade today, though there were mixed tones throughout. The dollar is keeping firmer on the balance of things, advancing against the pound and commodity currencies mostly.
This comes alongside higher Treasury yields, as bonds sell off following the long weekend in the US with 10-year yields rising to near 1.37% during the session.
USD/JPY is marked higher, trading at the highs around 110.00 currently as such.
EUR/USD showed little poise to move, holding around 1.1860-70 levels mostly but is now trading near the lows as the dollar keeps firmer.
The pound is struggling for traction to start the new week, with cable easing below 1.3800 to 1.3770 and contesting a drop below key near-term levels as seen here.
Meanwhile, the aussie is struggling after the RBA tried to make the most out of a bad situation and played around with the optics - which makes the central bank come off as being more indecisive more than anything else.
AUD/USD shot up from 0.7440 to 0.7468 initially before falling to 0.7390 levels now.
Elsewhere, equities are showing some trepidation as the bond market makes some noise while commodities are struggling amid higher yields and a firmer dollar so far today.
