Forex news from the European trading session - 8 October 2021
Headlines:
- UK consumer confidence sinks amid inflation fears - BofA survey
- CAD/JPY trades to fresh three-month highs as buyers eye further upside extension
- USD/JPY nears a test of 112.00 again as Treasury yields edge higher
- Germany August trade balance €13.0 billion vs €17.9 billion prior
- 10-year Treasury yields edge up the highest since mid-June
Markets:
- NZD leads, JPY lags on the day
- European equities mixed; S&P 500 futures up 0.1%
- US 10-year yields up 0.8 bps to 1.578%
- Gold up 0.3% to $1,761.23
- WTI up 0.7% to $78.87
- Bitcoin up 2.2% to $55,398
European morning trade today served as a placeholder session ahead of the US jobs report later at 1230 GMT, as the market mood was mixed with very little happening.
Equities kept steadier without any real conviction as European indices are sitting more mixed and little changed, similar to US futures during the session.
The bond market was met with some early selling that saw 10-year Treasury yields briefly clip 1.60% for the first time since June but yields have come back down now to sit below 1.58% as traders take to some trepidation ahead of the key risk event today.
The early push higher in yields saw USD/JPY move up from 111.80 to 111.99 before paring that advance to stick around 111.70 levels currently.
The dollar in general kept more mixed and little changed across the board, leaving little for currency traders to work with during the session as we wait on the reaction to the non-farm payrolls release for the next move.
After the resilient rebound yesterday, oil prices are still looking perky as it kept an advance to $79.66 before gains eased back to $78.80 levels now.
It's all about the US jobs report though as that will set the tone for the market ahead of the weekend, even if it would do little to change up Fed taper expectations (regardless of a miss/disappointing release) ahead of next month's FOMC meeting.
