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Wrap-up of European FX news: The pound is slightly weaker, and the Bank of England has lowered the threshold for unwinding QE.

  • 05 August, 2021
  • 7:01 pm EEST

Market news

European Forex News Wrap :

 

The major currencies started pretty calm but are starting to move more as we approach North American trading, with the dollar slipping slightly after yesterday’s gains.

Risk sentiment is more divided in Europe, but US futures are maintaining a modest increase, despite Treasury rates being slightly lower on the day.

EUR/USD is moving rising from 1.1835 to 1.1850 levels after trading in a more muted range during the morning, though significant expiries are likely to keep price movement in check.

USD/JPY gave up previous gains from 109.75 to 109.45 as yields fell, but keep in mind that the pair has a significant expiry near 109.50 later today.

Aside from that, the dollar is depreciating against commodity currencies in particular. The USD/CAD declined from 1.2530 to 1.2500 during the day, while the NZD/USD rose from 0.7050 to 0.7070 as buyers sought major resistance near 0.7100.

Even as Victoria, Australia’s second largest state, enters a new seven-day lockdown, the aussie is the leading gainer. The AUD/USD pair rose from 0.7390 to 0.7414 throughout the session, as investors sought a daily finish above 0.7400.

The BOE was the session’s second major focus, although no policy changes were announced. The central bank reduced its policy rate benchmark for unwinding QE from 1.50 % to 0.50 % , although the pound is seeing little change overall for the time being.

GBP/USD had a bit of a whipsaw between 1.3905 and 1.3945, but is now hovering around 1.3910-20 levels, with the dollar a little softer.

 

Markets News :

  • AUD leads, USD lags on the day
  • European equities mixed; US futures up 0.2%
  • US 10-year yields down 1 bps to 1.172%
  • Gold up 0.1% to $1,812.81
  • WTI down 0.2% to $68.05
  • Bitcoin down 4.6% to $37,913

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