Forexlive European FX News 9 May: Oil up, USD early demand, US 10yr yields break 3%

Author: Giles Coghlan | Category: News

Economic news 9th May 2018

Market data

  • DXY down 0.05% at 93.07
  • US 10 year yields up 0.89% at 3.0023
  • FTSE 100 up 0.59% 7610.12
  • Bitcoin -0.87% at 9155
  • Gold -0.42% at 1308.97
  • Oil US crude +2.51% at 70.79

This session has been a continuation of the reaction to Trump's Iran nuclear deal withdrawal. Oil has surged over recent Hughs and WTI US crude hit a peak of 71.12 during the session. The EU, Germany, and France have all been on the air waves urging Iran to stick to the deal. Iran has been on the air waves at the end of the session showing their annoyance, but crucially have not ruled out negotiating. European oil equities up on trading bearing supported by the rising oil prices.

At the same time US demand shows no signs of abating with the USD/JPY heading up towards 110. The 10 year yields broke over 3% again and the Dollar Index is currently 93.15. Dollar looks set to continue its grind higher making new lows against the EUR and AUD during the session.

More bad news for the EURO with data out from France , Italy and Spain. Italy saw a surprise uptick in their YoY retail sales to +2.9%. However, that just provides fuel for selling EUR rallies with the market bearish after the soft Q1 data. 

The Bank of England due to have their rate meeting tomorrow and the consensus view is that pretty much regardless of what the BOE say tomorrow, the GBP remains in a medium term bearish outlook.

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