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European FX news roundup: Dollar falls, risk bets rise as attention shifts to Jackson Hole

  • 23 August, 2021
  • 5:55 pm EEST

Forex market headlines from the European trade session – August 23, 2021

As the new week begins, the focus is on Jackson Hole, as market investors see the summit’s virtuality as a hint that the Fed would not release any new wording on taper expectations this week.

This is providing some relief to risk trades, which lost significantly last week due to delta variant concerns. Equities are up, and we’re seeing some unwinding in bond safety bets as Treasury yields rise slightly on the afternoon.

As a result, the dollar and yen are under pressure, with commodities currencies leading the charge in the major currency sector.

At the tail end of Asia Pacific trading, USD/CAD is down 100 pips to 1.2715 from about 1.2770, with the loonie aided by higher oil prices as the commodity capitalised on a weaker dollar to rise 3 % to $64.

CAD/JPY, in particular, has risen from the dead, with the price up more than 1% today following Friday’s spectacular turnaround to avoid a head-and-shoulders breakdown.

Both the AUD/USD and the NZD/USD have gained 0.7 % and are trading near their highs at 0.7185 and 0.6870, respectively, ahead of North American trading.

Meanwhile, EUR/USD is back over 1.1700, trading around 1.1710-20 on the afternoon, while GBP/USD has remained stable around 1.3660-70, despite weak UK PMI data.

In other news, gold is closing in on $1,800 thanks to a weaker dollar, while Bitcoin is in solid shape, having held above $50,000 since early trading today.

 

Markets News :

  • CAD leads, JPY lags on the day
  • European equities higher; S&P 500 futures up 0.4%
  • US 10-year yields up 1.7 bps to 1.277%
  • Gold up 0.6% to $1,791.87
  • WTI up 3.1% to $64.05
  • Bitcoin up 3.4% to $50,340

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