ForexLive European FX news wrap: Dollar remains steady, oil bounces
Forex news from the European trading session - 10 August 2021
- US July NFIB small business optimism index 99.7 vs 102.5 prior
- Powell reportedly faces growing resistance for second term as Fed chair
- Germany August ZEW survey current conditions 29.3 vs 30.0 expected
- Oil climbs by 2% on the day as rebound extends
- Japan July economy watchers survey current situation 48.4 vs 47.6 prior
- AUD leads, JPY lags on the day
- European equities slightly higher; S&P 500 futures flat
- US 10-year yields up 1.3 bps to 1.329%
- Gold flat at $1,729.93
- WTI up 2.0% to $67.81
- Bitcoin down 0.1% to $45,429
It was a quiet session as major currencies observed light changes with the dollar continuing to keep steadier to start the new week.
Trading sentiment continues to revolve around the post-NFP momentum driving Fed taper expectations and delta variant concerns globally. For now, the former seems to be edging it slightly going into tomorrow's US consumer price inflation release.
EUR/USD is holding at over four-month lows at 1.1720 though the range today remains narrow, with key support still seen closer to 1.1704-11 for the time being.
USD/JPY inched higher as Treasury yields stay buoyed, with 10-year yields extending to 1.33% in European morning trade. That saw the pair move up from 110.35 to 110.50-55, nearing a test of the 23 July high @ 110.59.
Meanwhile, the pound is up slightly by 0.1% to around 1.3850-60 levels against the dollar while commodity currencies are also a touch higher but nothing too significant.
Equities are tentative for the most part though European indices are still continuing to squeeze out gains, with the Stoxx 600 extending to fresh record highs.
In the commodities space, gold is taking a bit of a breather after the drop yesterday while oil prices are rebounding upon a test of the July lows yesterday to near $68 in European morning trade, gaining by over 2% at the highs.
Looking ahead, we'll get the US Senate vote today on the bipartisan infrastructure bill before switching over to the budget framework so expect a drawn-out session of political headlines as lawmakers look to sort things out later in the day.