A case of the summer doldrums


Forex news from the European trading session – 12 August 2021

Headlines:

Markets:

  • USD leads, AUD lags on the day
  • European equities slightly higher; S&P 500 futures up 0.1%
  • US 10-year yields flat at 1.357%
  • Gold down 0.1% to $1,750.50
  • WTI down 0.5% to $68.92
  • Bitcoin down 3.2% to $44,848

The market is keeping extremely quiet so far on the day, with Europe experiencing a case of the summer doldrums with FX ranges and risk tones generally subdued.

European equities are seeing a slight advance after a more flattish start, mirroring the more tepid mood in US futures as well. S&P 500 futures and Dow futures are up 0.1% though now, inching ahead after the record highs yesterday.

The calmer tone in the bond market is also helping to keep the dollar steadier as 10-year Treasury yields recover the drop from yesterday to near 1.36%.

The dollar is keeping in a better spot after the decline yesterday but major currencies are showing little poise to really move so far on the day.

EUR/USD keeps within a 15 pips range near 1.1740, caught between key support near 1.1700 and daily resistance closer to 1.1750-55 for the moment.

USD/JPY also didn’t do much as it traded between 110.35-45 for the most part. Meanwhile, GBP/USD is seeing a slight retreat from 1.3870 to 1.3845 but nothing that really signifies a meaningful drop when viewing the technical picture in the pair.

Elsewhere, the aussie and the kiwi are also retreating slightly after a more positive session yesterday so that alludes to more of a push and pull in price action for now.

North American traders will have work to do in order to stretch the ranges for the day but with Treasury yields looking poised to keep with a bounce, the dollar should hold up well regardless as risk appetite also looks more cautiously optimistic.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Copyright © 2019 Billionaire Club Co LLC. All rights reserved

Chat
Loading the chat ...