European Forex news roundup: the dollar is marginally weaker, but equities remain stable.
Forex market news during the European trade session on October 22, 2021
Even though there wasn’t much going on in European trade today, there were a couple of solid moves all things considered, despite the lack of major headlines.
The Eurozone PMI data confirmed a slowing in the recovery heading into Q4 due to supply bottlenecks and growing price pressures, with a similar mood noted in the UK as well.
Evergrande allegedly making a bond repayment a few days before its 23 October due date helped to improve the risk mood early in Asia trading, and while the excitement faded a little in Europe, we’re seeing equities push higher again presently.
European markets are up 0.5 % to 1.0 % , while S& 500 futures are presently up 0.1 % after falling about 0.3 % earlier.
However, technology remains the laggard, with Snap shares proving to be a drag on morale following a poor earnings projection after the close overnight.
The dollar has weakened somewhat, with EUR/USD rising from 1.1625 to 1.1640 and USD/JPY falling from 114.00 to 113.80, despite the fact that Treasury yields remain high. However, 10-year rates have fallen from 1.70 % yesterday to 1.68 % today.
Commodity currencies are among the major gainers, with the USD/CAD sliding from 1.2350 to 1.2325 on the day as oil prices rise. The Australian dollar is the top gainer, with the AUD/USD trading over 0.7500, attempting to reverse yesterday’s loss.
The focus on inflation remains a significant issue in the market, with Eurozone inflation estimates topping 2% for the first time since 2014. That will undoubtedly keep things intriguing in the run-up to the ECB (and BOJ and BOC) meetings next week.
Markets News :
- AUD leads, GBP lags on the day
- European equities higher; S&P 500 futures up 0.1%
- US 10-year yields up 0.5 bps to 1.68%
- Gold up 0.6% to $1,792.40
- WTI up 0.7% to $83.07
- Bitcoin up 1.2% to $63,431