European Forex news roundup: The dollar strengthens modestly, as shares fall.
Forex market news for the European trade session on October 29, 2021
There was lots of data to analyze in European morning trade, but they pretty well maintained the eurozone’s weak recovery conditions in Q3, while October inflation jumped higher, causing the ECB more issues despite their defiance yesterday.
Eurozone inflation has risen to its highest level in 13 years, and bond yields, particularly in the periphery, are rising dramatically on the day, as markets increase their bets on the ECB raising interest rates (10 bps fully priced in for July next year).
With long-end rates rising again today, yen pairs are benefiting, with USD/JPY rising from 113.55 to 113.85 on the day.
Meanwhile, a more muted tone in equities (tech leading the way lower after disappointing earnings from Apple and Amazon) is driving risk currencies lower, while the dollar is gaining ground for the most part on the session.
EUR/USD plummeted from 1.1665 to 1.1645 and is still near the lows, while USD/CAD is slightly higher around 1.2340-50 since early morning activity.
The Australian dollar is behind slightly as the AUD/USD retreated from a test of its 200-day moving average, falling from 0.7550 to 0.7535. Furthermore, the NZD/USD declined from 0.7185 to 0.7165 as the antipodeans struggled in general amid a lower risk environment.
Month-end trading may provide some volatility before the weekend, but be mindful of bond market changes as they will likely extend over to next week and begin to have a bigger influence, with the FOMC meeting also just around the corner.
Markets News :
- CHF leads, NZD lags on the day
- European equities lower; S&P 500 futures down 0.4%
- US 10-year yields up 3.6 bps to 1.605%
- Gold down 0.3% to $1,792.88
- WTI up 0.4% to $83.11
- Bitcoin down 0.8% to $60,933