Forex news from the European trading session - 16 June 2021
Headlines:
- ECB's Makhlouf: Too early to discuss end of PEPP now
- US MBA mortgage applications w.e. 11 June +4.2% vs -3.1% prior
- ECB's de Guindos: Policy should normalise gradually, with prudence
- ECB reportedly set to extend bank capital relief by nine months
- EU lifts travel restrictions for US residents - report
- Ifo cuts German growth forecast this year from 3.7% to 3.3%
- China May retail sales +12.4% vs +14.0% y/y expected
- UK May CPI +2.1% vs +1.8% y/y expected
- UBS raises Brent oil forecast for September from $75 to $78
- Germany reports 1,455 new coronavirus cases, 137 deaths in latest update today
- China said to order state enterprises to limit exposure to overseas commodities markets
Markets:
- NZD leads, CHF lags on the day
- European equities mixed; S&P 500 futures -0.1%
- US 10-year yields down 0.7 bps to 1.485%
- Gold down 0.2% to $1,854.63
- WTI up 0.2% to $72.27
- Bitcoin down 2.2% to $39,068
The market continues to keep more sideways in general, with the dollar holding steady and little poise in equities and bonds as all eyes are on the Fed today.
The pound got a slight lift after hotter UK CPI data but it isn't really amounting to much with cable testing near-term levels and sticking around there for now, moving up from 1.4090 to 1.4120 during the session.
EUR/USD remains lackluster, trapped in a 24 pips range between 1.2114 and 1.2135.
The aussie and kiwi are holding a slight advance but once again it isn't anything that really stands out in the context of the past few weeks.
Elsewhere, the ECB continues to reiterate that it isn't the time to discuss ending PEPP while China took further action to try and rein in surging commodity prices.
The countdown to the FOMC meeting continues.
