European Forex news roundup: Yen pairs continue to rise
Forex market news during the European trade session on October 15, 2021
It was a positive afternoon for risk trades, despite the fact that important headlines were few and far between in the market today.
European markets opened higher and are holding substantial gains, while US futures are also pointing to a positive beginning following yesterday’s strong performance.
Treasury yields are also rising as the recent sell-off comes to a halt. 10-year rates are up more than 2 basis points to 1.54 percent, further strengthening yen pairs this week.
USD/JPY has risen to its highest level since October 2015, above 114.00 to 114.30, while other yen pairs have also moved significantly on the day.
GBP/JPY has reached its highest level since June 2016, as investors seek to break above the January 2018 high of 156.61. CAD/JPY is also extending its recent strong performance, rising from 92.10 to 92.60, its best level since December 2015. Meanwhile, the New Zealand dollar/Japanese yen has risen to its highest level since January 2018 with a move above 80.00 to 80.70.
In the meantime, the dollar is trading more mixed, with little move against the euro, loonie, and aussie. However, the pound is significantly leading gains (I’d attribute this to a GBP/JPY move), with cable rising from 1.3690 to 1.3750 on the day.
The release of US retail sales data will be an important risk event to follow in the next session, as the market focuses on risk sentiment and technicals ahead of the weekend.
In any case, I believe dip buyers will be able to hold their ground if the data release is delayed or if we see some early selling in equities later on.
Markets News :
- GBP leads, JPY lags on the day
- European equities higher; S&P 500 futures up 0.4%
- US 10-year yields 2.2 bps to 1.541%
- Gold down 0.9% to $1,780.50
- WTI up 1.0% to $82.10
- Bitcoin up 3.3% to $59,363