European Forex news roundup: The dollar rises as inflation fears and the energy crisis roil markets.
Forex market news during the European trade session on October 6, 2021
Inflation fears gripped the market in European morning trade, as bond rates rose amid a jump in gas prices in Europe, as the energy crisis escalated.
UK gas prices rose by 40% at one time before falling back to roughly 4%, but this isn’t calming concerns about the session.
The rise in yields dragged on shares, transforming a milder start into a very hefty selloff as we head into North American trading. European indices are down nearly 2%, while US futures are down more than 1%, as risk aversion spreads throughout the market.
The dollar remained steady throughout, with EUR/USD sliding from 1.1590 to new year lows of 1.1530 and GBP/USD falling from 1.3600 to 1.3545.
The USD/JPY rose somewhat early on due to rising yields, reaching 111.78, but has since fallen to 111.42 as negative sentiment in markets takes hold.
Commodity currencies remain the laggards, with the AUD/USD falling from 0.7270 to 0.7230 as sellers reclaimed near-term control, and the NZD/USD falling more than 1% from 0.6930 to 0.6880 during the day.
USD/CAD also increased from 1.2600 to 1.2640, as WTI crude is marked slightly lower after an early gain to above $79 before dropping back to $78.50.
The ADP employment data will be the next significant risk event to monitor, but keep an eye on the developments in the energy crisis and inflation predictions as the market has been tuned into that frequency quite tightly so far today.
Markets News :
- JPY leads, NZD lags on the day
- European equities lower; S&P 500 futures down 1.2%
- US 10-year yields up 1.7 bps to 1.548%
- Gold down 0.3% to $1,754.70
- WTI down 0.5% to $78.54
- Bitcoin down 0.4% to $51,260