ForexLive European FX news wrap: Dollar slightly firmer as risk moves to the ebb and flow
Forex news from the European trading session - 8 September 2021
- China Evergrande reportedly to delay loan interest payment to banks
- US MBA mortgage applications w.e. 3 September -1.9% vs -2.4% prior
- Japan reportedly plans to extend virus emergency through to 30 September
- BOJ's Kuroda: To continue persistent easing even after COVID-19 pandemic
- ICYMI: Fitch downgrades China Evergrande, sees 'probable' default
- ECB's Holzmann: Sees potential upside inflation risks
- France July trade balance -€6.96 billion vs -€5.82 billion prior
- The bond market is the key spot to watch on the week
- Fed's Bullard looks past NFP miss, reaffirms taper call
- NZD leads, EUR lags on the day
- European equities lower; S&P 500 futures flat
- US 10-year yields down 1.8 bps to 1.353%
- Gold up 0.2% to $1,797.81
- WTI up 1.5% to $69.40
- Bitcoin down 0.6% to $46,540
There was some decent action in Europe today with risk sentiment moving to the ebb and flow as the market continues to stay in search of fresh clues on the week.
The dollar gained some ground early on alongside the yen as risk trades slipped with European indices marked down by roughly 1% and US futures down 0.4%.
The softer sentiment abated with European indices now down between 0.3% to 0.6% and US futures turning flat going into North American trading.
As such, movement in FX was also largely tied in with that as the dollar surrendered gains against commodity currencies but is still holding mildly higher against the euro.
EUR/USD was nudged lower from 1.1840 to 1.1813 as sellers keep near-term control and look towards a test of the 1.1800 handle ahead of the ECB meeting tomorrow.
USD/JPY moved up to a high of 110.44 at the tail-end of Asia Pacific trading before retreating to 110.15 on softer risk sentiment before keeping at 110.25-30 now.
Elsewhere, AUD/USD fell from 0.7380 to 0.7350 but buyers are hanging on to near-term support from its 200-hour moving average as price rebounds back to 0.7380.
While risk appetite isn't showing much poise to rally further so far this week, it isn't exactly convinced of a major shift towards being completely on the defensive just yet. That said, there are some considerable factors to take note of as I highlighted earlier:
In summary, the market looks to still be gripped post-NFP as traders and investors await the next catalyst for firmer direction on the week.