European Forex news roundup: Cryptocurrencies fall as a result of China’s crackdown, while equities fall.
Forex market news from the European trade session on September 24, 2021
The day began with more skepticism in general, but stocks are witnessing a modest retreat following the gains of the previous several days as the week comes to a close.
For the most part, Evergrande and China concerns remain, leaving some space for prudence despite the greed displayed by dip buyers following the FOMC this week.
European indices are lower across the board, with small but not unduly dramatic losses seen. For some background, the DAX is down 0.7 percent, but it isn’t enough to wipe out yesterday’s gains, and the index is still up 0.3 percent for the week.
That may not sound like much, but keep in mind that the week began with a 3% drop on Monday amid a broad market selloff at the time.
In any case, FX was more clear, as rising rates put the yen under pressure, while the dollar maintained a solid rise on a lower risk mood.
EUR/USD steadily slid from 1.1730 to 1.1715, while GBP/USD fell from post-BOE highs of 1.3710 to 1.3675 as the dollar remained steady.
Commodity currencies have been noteworthy laggards, with the USD/CAD rising from 1.2670 to 1.2700 and the AUD/USD sliding from 0.7290 to 0.7250 during the session.
One of the most important issues in the market today is the drop in cryptocurrency prices as China threatens a heavy crackdown, warning that all cryptocurrency-related activities are unlawful and that they would crack down hard on them (a repeat message but still, a fresh one).
Bitcoin fell from $44,800 to $40,700 as it tested its 100-day moving average again, while Ether fell by more than 12% to a low of $2,736 at one time.
Markets News :
- CHF leads, AUD lags on the day
- European equities lower; S&P 500 futures down 0.4%
- US 10-year yields up 1.2 bps to 1.421%
- Gold up 0.6% to $1,752.14
- WTI down 0.2% to $73.15
- Bitcoin down 8.1% to $41,100