Forex news from the European trading session - 28 July 2021
Headlines:
- Pfizer says it has already produced first batch of vaccines focused on delta variant
- US MBA mortgage applications w.e. 23 July +5.7% vs -4.0% prior
- Japan reportedly mulls state of emergency for Tokyo neighbouring prefectures amid record cases nationwide
- Bitcoin flirts with $40,000 again as buyers stay in search of fresh upside momentum
- Tokyo reports a record 3,177 new daily COVID-19 cases
- UK July Nationwide house prices -0.5% vs +0.6% m/m expected
- Germany August GfK consumer confidence -0.3 vs 0.9 expected
- Germany June import price index +1.6% vs +1.6% m/m expected
Markets:
- CAD leads, AUD lags on the day
- European equities slightly higher; S&P 500 futures flat
- US 10-year yields up 2 bps to 1.264%
- Gold down 0.2% to $1,796
- WTI up 0.1% to $71.96
- Bitcoin up 3.1% to $40,714
Major currencies were more tepid with risk keeping steadier as all eyes are on the FOMC meeting decision later today. The Fed isn't expected to announce any policy changes but a lot of emphasis will be put on the language and any hints on tapering.
EUR/USD holds just above 1.1800 with USD/JPY climbing back up just above 110.00 as Treasury yields are up slightly ahead of the Fed later.
There weren't any major releases for market participants to work with, though US futures did climb a little off lows at the start of the day to be closer to flat levels now.
The aussie and kiwi are slightly softer but nothing too major with the loonie keeping a slight advance ahead of Canadian CPI data at the bottom of the hour.
It's all about the Fed today so let's see where that takes us before the final two days of the trading week.
