Forex news from the European trading session - 4 November 2021
Headlines:
- US October Challenger layoffs 22.8k vs 17.9k prior
- Eurozone September PPI +2.7% vs +2.3% m/m expected
- Shenzhen regulators to hold meeting tomorrow to discuss liquidity issues related to Fantasia, Kaisa
- OPEC+ reportedly likely to stick with oil output plan
- Eurozone October final services PMI 54.6 vs 54.7 prelim
- US said to ask OPEC+ to increase output by 600k to 800k bpd
- Germany September factory orders +1.3% vs +2.0% m/m expected
- BOJ's Kuroda: Will continue with yield curve control even after pandemic
Markets:
- JPY leads, EUR lags on the day
- European equities higher; S&P 500 futures up 0.1%
- US 10-year yields flat at 1.578%
- Gold up 0.5% to $1,779.25
- WTI up 1.9% to $82.38
- Bitcoin down 1.9% to $61,530
The dollar returned back to favour as the market continues to find a footing post-FOMC, with the greenback notably gaining across the board except against the yen.
Treasury yields advanced yesterday initially but are retreating in the European session and that is weighing on yen pairs in general with USD/JPY falling from 114.20 to 113.80.
But the dollar is maintaining decent gains elsewhere with EUR/USD falling from 1.1580 to 1.1545 and GBP/USD down from 1.3670 to 1.3620 on the session.
Even commodity currencies are marked lower despite a more positive risk mood, all things considered. European equities are holding modest gains with the DAX and Stoxx 600 indices flirting with fresh record highs in trading so far.
But AUD/USD is down 0.4% to 0.7415 and approaching the 0.7400 level with USD/CAD also trading back up above 1.2400 to 1.2420 even as oil prices recovered from lows near $80.30 early on to $82.40 now ahead of the OPEC+ meeting.
On the last part, the bloc is expected to defy calls by the US to step up output further and stick to plans of increasing output by 400k bpd.
We also have the BOE decision coming up so that's one to watch for the pound.
