Forex news from the European trading session - 2 August 2021
Headlines:
- UK July final manufacturing PMI 60.4 vs 60.4 prelim
- Key takeaway from the euro area manufacturing PMI readings today
- SNB total sight deposits w.e. 30 July CHF 712.0 bn vs CHF 712.1 bn prior
- Eurozone July final manufacturing PMI 62.8 vs 62.6 prelim
- Switzerland July CPI +0.7% vs +0.7% y/y expected
- Germany June retail sales +4.2% vs +2.0% m/m expected
- Bitcoin sees rally above $40,000 pull back
Markets:
- AUD leads, NZD lags on the day
- European equities higher; S&P 500 futures up 0.4%
- US 10-year yields down 1 bps to 1.228%
- Gold down 0.3% to $1,807.40
- WTI down 1.4% to $72.93
- Bitcoin down 2.7% to $39,549
It was a quiet session as a typical summer's day casts itself on European morning trade with major currencies seeing little action to get the month of August started.
Risk appetite was more positive as equities look for a bounce after Friday's decline but gains are modest and more measured during the session. US futures also held on to decent gains as S&P 500 futures are seen up 0.4% currently.
The bond market is reflecting some calmer tones but yields are a touch lower now.
That said, everything put together couldn't really give FX a spark with the dollar sitting a touch lower on the balance of things; nothing too significant though.
EUR/USD stuck largely between 1.1870-80 levels with gains kept in-check closer to 1.1900. Large expiries are also seen at the figure level, so there's that to consider.
GBP/USD saw a slight advance from 1.3900 to 1.3930 before pulling back closer to the figure level now. Elsewhere, the dollar is more or less little changed against risk currencies as narrower ranges are still prevailing going into US trading.
In commodities, gold is down slightly but still holding above $1,800 and its 100-day moving average @ $1,802 for now. Oil is down as well but declines seem to be managed closer to the 100-hour moving average @ $72.71 as price sits near $73 currently.
Meanwhile, Bitcoin is seeing its weekend rally pull back as the rally above $40,000 snaps and price is sitting back below the pivotal mark to start the week.
