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European FX news roundup: Hawkish Hawkesby strengthens the Kiwi

  • 24 August, 2021
  • 4:28 pm EEST

European FX news roundup: Hawkish Hawkesby strengthens the Kiwi

Forex market headlines from the European trade session – August 24, 2021

For the most part, it was a quiet day as the market calmed down following a hectic start to the new week yesterday, settling into the countdown to Jackson Hole on Friday.

Risk sentiment has remained quiet, and while European markets have pared early gains to be more mixed, US futures are still gaining somewhat but are off earlier highs.

Following yesterday’s dip, the dollar is more subdued in FX, with all of the movement centered on commodity currencies so far today.

The kiwi and the Australian dollar were somewhat higher early on, but the kiwi pushed ahead after some hawkish statements by RBNZ associate governor Christian Hawkesby.

He conveyed the idea that the central bank considered boosting the OCR by 50 basis points last week, and that only the last-minute curveball and statewide lockdown announcement prevented them from tightening monetary policy.

This aided the NZD/rise USD’s from 0.6915 to 0.6940, and the pair is now trading near the highs ahead of North American trading.

USD/CAD also fell from 1.2650 to 1.2606 before settling at 1.2620 as the loonie maintained some of its momentum from yesterday.

Elsewhere, there is a little of a push and pull among dollar pairings, specifically EUR/USD, GBP/USD, and USD/CHF, although all are trading close to flat and little altered amid narrow ranges – similarly, USD/JPY is trading around 109.65-75.

The market appears to be sitting on its hands in anticipation of Jackson Hole, but be mindful of any dollar/risk positioning move ahead of the important risk event in the coming days.

 

Markets News :

  • NZD leads, EUR lags on the day
  • European equities mixed; S&P 500 futures up 0.2%
  • US 10-year yields up 1.5 bps to 1.27%
  • Gold down 0.1% to $1,803.20
  • WTI up 1.5% to $66.62
  • Bitcoin down 0.3% to $49,389

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