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European FX news roundup: Kiwi maintains advances, risk appetite remains lukewarm

  • 04 August, 2021
  • 6:00 pm EEST

Market news

Kiwi maintains advances, risk appetite remains lukewarm

For the most part, it was a quiet session with eurozone services. PMI numbers are primarily reaffirming the region’s more robust recovery in the heart of summer, while rising cost inflation may still pose a challenge in the months ahead.

European equities are slightly higher, while US futures are more sluggish, showing a mixed tone in terms of risk appetite.

Treasury rates have been relatively stable for the most part, with attention shifting to the publication of US non-farm payrolls on Friday.

FX was also more restrained as the dollar remained fragile, with USD/JPY hanging around 109.00 and seeking to test seas below that level.

Price movement in the EUR/USD is more moderate around 1.1860-70, with substantial expiries seen anchoring the pair around 1.1830-60 on the day.

The kiwi, on the other hand, is the leading gainer, with NZD/USD rising from 0.7050 to 0.7080, extending gains from Asia Pacific trading following a more solid RBNZ jobs data.

The Australian dollar is also gaining ground, with the AUD/USD currently moving higher from 0.7400 to 0.7410-20 levels, benefiting marginally from a stronger kiwi.

Elsewhere, oil has continued to slump below $70, with discussion of demand anxieties persisting as China takes additional steps to try to limit the spread of the delta variety.

This is assisting the USD/CAD to maintain a modest increase, with the pair rising from 1.2520 to 1.2540-50 levels ahead of North American activity.

 

Markets News :

  • NZD leads, CAD lags on the day
  • European equities higher; S&P 500 futures down 0.2%
  • US 10-year yields up 0.8 bps to 1.182%
  • Gold up 0.4% to $1,817.30
  • WTI down 1.1% to $69.80
  • Bitcoin flat at $38,100

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