European FOREX news roundup: DXY is slightly higher ahead of the US CPI print.
The latest forex news from the European morning session on December 10, 2021.
The market began carefully and quietly in front of the highly anticipated US CPI report. The main mover was primarily driven by the USD. A US CPI beat is forecast, and there must be concerns that a significant move higher may cause a disorderly bond market move, weighing on stocks. So, depending on how hot the reading is, keep an eye out for it later. This serves as a good reminder that Omicron worries are only one storyline in the markets right now. Another story that could hurt risk assets is the possibility of the Fed going too far, too fast. So, if we get a very good beat, expect the Dollar to rise more and gold to fall. A significant miss in the CPI print, and the AUDUSD could soar, with gold benefiting.
The driver for the US CPI is printed.
The expectation of the US CPI print was the key driver of the European session’s subdued markets. A lackluster UK GDP result added to the pound’s woes, and Sonia futures have now priced in the possibility of a December rate hike. Even if Saunders had been a little more cautious last weekend, it would be a huge surprise if the BoE increased next week.
The gathering of a swath of central banks next week could be more interesting. Everyone have a wonderful weekend.
The EUR/USD has risen somewhat in response to US inflation data.
The dollar was under pressure after the United States confirmed annual inflation at 6.8 % in November, the highest level in nearly four decades. As government bond yields fell, the EUR/USD struggled to recover above 1.1300.
Meanwhile, hawkish Fed forecasts have continued to operate as a tailwind for US Treasury bond yields. This, combined with the general skepticism, bolstered the safe-haven greenback and limited the rise for the EUR/USD pair. Mixed stories about the Omicron version of the coronavirus kept the recent optimism at bay, as evidenced by a weaker tone in the equity markets.
Markets News :
- FTSE +0.02%
- Euro Stoxx +0.33%
- Dax +0.30%
- Bitcoin +2.85%
- Gold -0.15%
- US oil +1.57%