Forex news from the European trading session - 4 October 2021
Headlines:
- UK's Sunak: Job-support initiatives will be extended into the following year
- European Commission to meet next week to discuss energy crisis measures
- US plans 'frank conversations' with China on Phase One trade deal
- Eurozone October Sentix investor confidence 16.9 vs 19.0 expected
- Gas prices to keep surging in the weeks/months ahead?
- SNB total sight deposits w.e. 1 October CHF 714.2 bn vs CHF 714.5 bn prior
- OPEC+ said to be seen keeping oil output policy unchanged later today
- ECB's de Guindos: Much of the increase in inflation is temporary
- Switzerland September CPI +0.9% vs +1.1% y/y expected
- Fumio Kishida formally announced as Japan's new prime minister
Markets:
- CHF leads, JPY lags on the day
- European equities slightly lower; S&P 500 futures down 0.4%
- US 10-year yields up 2.8 bps to 1.495%
- Gold down 0.6% to $1,750.09
- WTI up 0.2% to $76.01
- Bitcoin down 1.3% to $47,523
It was a rather mixed session in Europe with equities leaning towards the softer side amid renewed anxiety on Evergrande alongside other key issues from last week.
US futures were marked lower at the start of the session and stuck that way throughout, with European indices also posting slight losses but holding little changed for the most part now as we look towards North American trading.
Meanwhile, Treasury yields are higher for the first time in four days but put together, that is failing to provide any support for the dollar on the day.
The greenback instead is down against all other major currencies except the yen. USD/JPY is up slightly from 111.00 to 111.20 levels amid higher yields on the session.
EUR/USD is up from 1.1590 to 1.1630 with the dollar losing ground while GBP/USD pushed up from 1.3540 to 1.3600 as buyers start to seize back near-term control in cable.
Commodity currencies are also faring well against the dollar despite the less optimistic risk mood, with USD/CAD keeping lower throughout around 1.2610-20 while AUD/USD is up from 0.7260 to 0.7280 near session highs currently.
Elsewhere, oil is staying perky close to $76 ahead of the OPEC+ meeting later.
It is still early in the week to be calling for a major theme to sweep across the market and the mixed trading so far today will do little to convince otherwise for now.
