Forex news from the European trading session - 7 May 2021
Headlines:
- UK April construction PMI 61.6 vs 62.1 expected
- ECB's Kazaks: Decision to slow bond purchases is possible in June
- France March trade balance -€6.07 billion vs -€5.25 billion prior
- Germany March trade balance €20.5 billion vs €21.1 billion expected
- Germany March industrial production +2.5% vs +2.2% m/m expected
- Switzerland April unemployment rate 3.3% vs 3.3% expected
- Germany reports 18,485 new coronavirus cases, 284 deaths in latest update today
- India sees record rise of 414,188 daily COVID-19 infections in the past 24 hours
Markets:
- GBO leads, NZD lags on the day
- European equities higher; S&P 500 futures up 0.2%
- US 10-year yields down 0.5 bps to 1.565%
- Gold up 0.3% to $1,820
- WTI down 0.2% to $64.60
- Bitcoin up 1.2% to $56,625
It was a relatively quiet session for the most part as the market is seemingly a little lethargic awaiting the US non-farm payrolls report.
The dollar traded a bit more mixed as the euro gained a little after ECB policymaker Kazaks said hinted at a possible reduction in the pace of PEPP purchases for June. EUR/USD moved up from 1.2065 to 1.2090 but is keeping little changed now closer to 1.2070.
The pound also held steady around 1.3900-20 while USD/JPY is little changed holding just above the 109.00 handle for the time being.
Commodity currencies are the laggards but overall moves are relatively minute during the session, as narrow ranges are prevailing still.
Gold kept with the break above $1,800 yesterday to hold around $1,815-20 but is not doing much else awaiting firmer direction ahead of the weekend.
Similarly, US futures are steady and holding a touch higher while Treasury yields are pretty much flat as all eyes are fixated on the jobs report later.
