Forex news from the European trading session – 29 September 2021
Headlines:
Markets:
- JPY leads, NZD lags on the day
- European equities higher; S&P 500 futures up 0.5%
- US 10-year yields down 3 bps to 1.506%
- Gold up 0.5% to $1,742.90
- WTI down 0.8% to $74.72
- Bitcoin up 1.3% to $42,303
Bond sellers are taking a bit of a breather as yields ease from the highs to start the week while energy prices are also coming off the boil a little bit more after the surge higher and some cooling seen in yesterday’s trading.
10-year Treasury yields are down 3 bps to 1.506% as sellers take their foot off the gas pedal for now while oil and natural gas prices are seen slipping further from the highs yesterday, with the latter down 10% from the peak this week.
In turn, that is helping to see equities rebound on the day with tech stocks taking in some relief during the session. European indices are up around 0.6% to 1.1% on the day while Nasdaq futures are up 0.6%, S&P 500 futures up 0.5%, Dow futures up 0.4%.
That said, the dollar is keeping more resilient as we are seeing buyers push the technical agenda in EUR/USD with the pair falling to its lowest since November last year.
The drop from 1.1680 to 1.1640 today is keeping dollar bulls in the driver’s seat, setting their sights on 1.1600 next.
Meanwhile, GBP/USD also stumbled further to its lowest levels since January in a fall from 1.3540 to 1.3473 following some pushing and pulling early on.
AUD/USD also climbed down from earlier highs of 0.7250-60 to drop to 0.7225 and testing near-term support around 0.7220-30 on the session.
Elsewhere, NZD/USD dropped off from 0.6955 to 0.6923 and is hovering near the lows as the pair isn’t getting much reprieve on a break below 0.7000 this week.
The overall market moves seem a bit more mixed today but if bond sellers start to rear their heads again, that’d just add to tailwinds for the dollar as it continues to show much resilience in trading so far today.
That said, just be wary of month-end and quarter-end flows in the next day too.