European FX news roundup: Risk rises as the week comes to a close.
Forex market headlines from the European trade session on September 10, 2021
The dollar is expected to conclude the week higher, but it doesn’t feel that way.
Aside from gains against the euro and possibly the yen (albeit the latter is somewhat small), broad dollar strength is hard to find as the week comes to a close amid a more favorable risk sentiment, with markets soaring and yields rising.
The market has been more cautious and slightly defensive in recent days, but dip buyers and value hunters are returning today.
After all is said and done, the week may be summarized as a lot of pushing and pulling that amounts to nothing at the end of the day.
The EUR/USD pair is trading in a tight range around 1.1830-40 on the session, while the GBP/USD pair is racing up to a new one-week high from 1.3840 to 1.3880 as the pound recovers.
USD/JPY remained marginally higher during the session, ranging between 109.85 and 109.95, as Treasury rates recovered after the massive supply from this week’s auctions.
Elsewhere, the AUD/USD has been steadily rising from 0.7380 to 0.7410 before settling near 0.7400, while the NZD/USD is up 0.6 % to 0.7150 as risk sentiment remains positive.
Oil is a great performer in the commodities arena, rising by more than 1.7 % to $69.30, although price activity is still mostly trapped in a push and pull this week.
Essentially, the market is debating dovish central bank tapering while considering current economic uncertainties that appear to be dragging on the recovery in Q4.
Markets News :
- NZD leads, JPY lags on the day
- European equities mostly higher; S&P 500 futures up 0.4%
- US 10-year yields up 2 bps to 1.32%
- Gold flat at $1,795.02
- WTI up 1.7% to $69.30
- Bitcoin down 0.4% to $46,102