European Forex news roundup: Dollar weakens, pound rises alongside BOE
The market had some mixed tones in the session as we continue to digest the post-Fed sentiment, while Russia-Ukraine talks are also ongoing.
The dollar has yet to really take off, as it has seen a slight retreat across the board, with EUR/USD rising from 1.1030 to 1.1050-60 levels. USD/JPY is also down slightly as bond yields fall further post-Fed, falling from 118.70 to 118.50. This comes as 10-year Treasury yields have fallen from a high of 2.20 % yesterday to between 2.11 % and 2.13 % this morning.
The pound, on the other hand, is a notable gainer as the currency remains underpinned ahead of the BOE. Cable is testing 1.3200 and is up 0.4 % on the day, as traders prepare for a potential hawkish move by the Fed.
Meanwhile, the AUD/USD is up 0.7 % , extending gains from 0.7310 to 0.7340 following a strong Australian employment report.
Equities are remaining cautious, despite a modest start and a positive showing yesterday. European indices are mixed, but have given up most of their earlier gains, while US futures are slightly lower on the day.
Consolidating the market picture is difficult at the moment, but as the flows settle in over the next few days, perhaps there will be more clarity as to what the next key focus will be.
Turkish cenbank holds rates even as war drives inflation :
Turkey’s central bank kept its key rate steady at 14% on Thursday as expected, sticking to President Tayyip Erdogan’s unorthodox policy plan despite fallout from the war that the bank acknowledged has driven inflation higher.
After interest rates were held for a third straight month, the lira weakened more than 1% to 14.8 against the dollar.
The currency has shed 10% this year, mostly since Russia’s invasion of Ukraine sent energy prices soaring and upended the Turkish government’s plan to quickly achieve a trade surplus and tackle inflation that has jumped above 54% .
“The increase in inflation in the recent period has been driven by rising energy costs resulting from the heightened regional conflict,” the bank’s policy committee said.
Markets News :
- AUD leads, USD lags on the day
- European equities mixed; S&P 500 futures up 2.2%
- US 10-year yields down 5 bps to 2.13%
- Gold up 0.7% to $1,940
- WTI up 5.5% to $100.72
- Bitcoin down 0.33% to $41,010