Forex news from the European trading session - 29 April 2021
Headlines:
- Saxony April CPI +2.2% vs +1.7% y/y prior
- Eurozone April final consumer confidence -8.1 vs -8.1 prelim
- Treasury yields move back up close to pre-FOMC highs
- Germany April unemployment change 9.0k vs -10.0k expected
- ECB's de Guindos: Inflation could be higher than 2% at the end of the year
- Spain April preliminary CPI +2.2% vs +1.9% y/y expected
- Germany reports 24,736 new coronavirus cases, 264 deaths in latest update today
Markets:
- CHF leads, JPY lags on the day
- European equities mostly higher; S&P 500 futures up 0.7%
- US 10-year yields up 4.1 bps to 1.65%
- Gold down 0.3% to $1,776.50
- WTI up 1.3% to $64.70
- Bitcoin down 0.5% to $54,201
It was mostly a quiet session in Europe as the dollar found a bit of a footing after having tumbled following the FOMC meeting yesterday.
Stocks are in a good mood with US futures pointing to solid gains while Treasury yields are also ticking higher after having retreated after some dovish affirmations by the Fed.
10-year yields moved up to as high as 1.657% earlier and is settling thereabouts ahead of North American trading, keeping pressure on the Japanese yen today.
USD/JPY pushed up from 108.60 to just above 109.00 before paring back some of those gains to 108.80-90 levels currently. EUR/JPY kept with the recent break - staying on course towards the September 2018 highs near 133.00.
Meanwhile, CAD/JPY also broke out to its highest levels since October 2018 and holding near the highs for the day currently around 88.62.
The dollar held steadier in general and is keeping mostly little change across the board though EUR/USD is still keeping a daily break of key trendline resistance above 1.2111 while USD/CAD is tracking lows below the 1.2300 level at the moment.
US Q1 advanced GDP will be one to watch later today but it seems like risk is in party mode for now. However, there is a tolerance level to watch out for that may eventually be met with regards to seeing higher stocks and higher yields simultaneously.
