Forex news from the European trading session - 30 June 2021
Headlines:
- BOE's Haldane: The time calls for immediate thought, and action, on unwinding QE
- US MBA mortgage applications w.e. 25 June -6.9% vs +2.1% prior
- OPEC oil output said to have risen by 740k bpd in June
- Eurozone June preliminary CPI +1.9% vs +1.9% y/y expected
- Germany June unemployment change -38.0k vs -20.0k expected
- ECB's Villeroy: Inflation should go up a bit this year then down again in 2022, 2023
- UK Q1 final GDP -1.6% vs -1.5% q/q prelim
- Germany reports 808 new coronavirus cases, 56 deaths in latest update today
Markets:
- GBP leads, CHF lags on the day
- European equities lower; S&P 500 futures flat
- US 10-year yields down 1.5 bps to 1.456%
- Gold flat at $1,760.25
- WTI up 1.3% to $73.93
- Bitcoin down 3.5% to $34,916
It was a quiet session for the most part once again with the market getting more of taste of the summer lull, with the dollar keeping steady while equities drifted.
European indices are seen pulling back after yesterday's gains while the mood in US futures is rather muted and tepid, though things may get more lively at the London fix later.
Month/Quarter-end flows will be a factor to watch out for before the day ends but in FX, there doesn't seem to be much happening overall.
The pound is up slightly as cable recovers from 1.3820 to 1.3860 but is still keeping below key near-term levels @ 1.3885-95 with 1.3800 providing downside support.
The dollar remains steady overall as it sits a bit more mixed on the day with narrow ranges largely holding. EUR/USD keeps in a 26 pips range around 1.1890-00 while USD/JPY is holding in a 16 pips range around 110.50 with large expiries in play.
The grind towards the US non-farm payrolls later this week continues.
