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European FX news roundup: Concerns about Evergrande/China remain a source of concern.

  • 20 September, 2021
  • 3:27 pm EEST

European Forex news roundup: Concerns about Evergrande/China remain a source of concern.

Forex market news from the European trade session on September 20, 2021

The market is waking up to the risks associated with Evergrande and China, and it isn’t looking good.

Risk sentiment fell in Asia Pacific trading as property stocks on the Hang Seng plummeted, with broad pressures spreading to materials and financials as well – and moving over to Europe.

As a result, markets have been under pressure since the start of the day, with European indices down by more than 2% and SPX 500 futures extending their session fall from 0.7 % to 1.6 % .

In European morning trade, the protective sentiment is weighing on commodity currencies and strengthening currencies such as the yen, franc, and dollar.

EUR/USD fell marginally from 1.1715 to 1.1700, while USD/JPY fell from 109.90 to 109.50. GBP/USD has also dropped to new lows in nearly a month, falling below 1.3700 and currently trading at 1.3660-70.

Meanwhile, USD/CAD rose from 1.2790 to 1.2855 and is presently trading near the day’s highs as risk sentiment remains unfavorable. Oil prices are down more than 2% on the day, which isn’t helping the loonie’s attitude.

Looking to the antipodeans, the AUD/USD is down 0.5 % to 0.7227 and the NZD/USD is down 0.4 % to 0.7012, both remaining near the day’s lows.

In other news, 10-year Treasury rates are reversing their Friday advance, falling roughly 5 basis points to close to 1.32 % as market investors seek a flight to safety amid the uncertainty and angst.

It’s all about risk sentiment right now, and the concern is that things will become even uglier as the fallout from Evergrande/China spreads deeper this week.

Markets News :

  • JPY leads, CAD lags on the day
  • European equities lower; S&P 500 futures down 1.6%
  • US 10-year yields down 4.6 bps to 1.324%
  • Gold up 0.2% to $1,757.00
  • WTI down 1.9% to $70.63
  • Bitcoin down 6.2% to $44,055

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