ForexLive European FX news wrap: Dollar relatively steady, oil tumbles further

Forex news from the European trading session - 9 August 2021

Headlines:

Markets:

• JPY leads, CHF lags on the day
• European equities little changed; S&P 500 futures down 0.1%
• US 10-year yields down 0.8 bps to 1.28%
• Gold down 1.0% to $1,744.80
• WTI down 3.8% to $65.71
• Bitcoin up 7.2% to $45,800

The dollar kept steadier for the most part in European morning trade as major currencies didn't do a whole lot, chopping around in a narrow range on the session.

Equities are reflecting more of a tentative mood with European indices not showing much poise to start the week. US futures are keeping more mixed as Dow futures are down 0.3%, S&P 500 futures are down 0.1% while Nasdaq futures are up 0.1%.

The bond market is also hinting at some trepidation as the rebound in 10-year yields stall at the 1.30% juncture. An overview of the situation can be found here.

USD/JPY did inch lower slightly from 110.25 to 110.05 but nothing too significant with other dollar pairs also not showing much appetite to move so far.

The loonie is also holding up surprisingly well though even as oil prices plunge, with USD/CAD a touch lower at 1.2530 levels from 1.2550 earlier.

The commodities space is where all the action is at so far today with oil seeing a sharp drop by over 4% at the lows today to near a test of the July low @ $65.11. Price is now hovering at $65.78, keeping below a couple of key technical levels as seen here.

Elsewhere, gold and silver took a sharp tumble in Asia Pacific trading with the former falling from $1,750 to $1,677 before recovering to $1,730-40 levels during European morning trade after touching the March lows earlier in the day.

Despite a bit of breathing room after the sharp fall, gold remains vulnerable as key technical levels also still look to be giving way - at least for now.

August 10, 2021 at 12:11AM
Justin Low
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