European Forex news roundup: Payrolls are coming in slowly and steadily.

  • 08 October, 2021
  • 3:31 pm EEST

European Forex news roundup: Payrolls are coming in slowly and steadily.

Forex market news during the European trade session on October 8, 2021

As the market tone was mixed today, European morning trade served as a placeholder session ahead of the US jobs report later at 1230 GMT.

Equities have remained steady, with little conviction, while European indices have been more mixed and little altered, similar to US futures over the day.

The bond market was met with some early selling, with 10-year Treasury rates briefly touching 1.60 percent for the first time since June, but yields have since fallen to below 1.58 % as traders remain cautious ahead of the big risk event today.

The early surge higher in rates saw USD/JPY rise from 111.80 to 111.99 before reversing to hover around 111.70 levels.

The dollar in general remained mixed and barely moved across the board, giving currency traders little to work with throughout the day as we await the reaction to the non-farm payrolls announcement for the next move.

Following yesterday’s powerful bounce, oil prices remain buoyant, rising to $79.66 before easing back to $78.80 levels.

The US jobs report, on the other hand, will set the tone for the market ahead of the weekend, even if it will do little to affect Fed taper forecasts (despite of a miss/disappointing release) ahead of next month’s FOMC meeting.

President of the Europen Central Bank (ECB), reiterated that the current inflation spike in the euro area is largely temporary.

“The ECB shouldn’t overreact to the current inflation spike,”Legard added and said that a premature tightening could harm the economic recovery and the┬álabour market.

Market reaction

These comments don’t seem to be having a noticeable impact on the shared currency’s performance against its rivals. As of writing, the EUR\USD was up 0.05% on the day at 1.1555.


Markets News :

  • 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

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