ForexLive European FX news wrap: Dollar falls on equities rebound

Forex news from the European trading session - 1 October 2021

Headlines:

Markets:

• GBP leads, USD lags on the day
• European equities flat; S&P 500 futures up 0.4%
• US 10-year yields down 3.9 bps to 1.487%
• Gold down 0.1% to $1,754.11
• WTI down 0.4% to $74.76
• Bitcoin up 9.3% to $47,498

There weren't any major catalysts for the turnaround in risk sentiment during the session but dip buyers are prevailing as we look to get into the closing stages of the week.

US and European futures were marked down heavily early on and cash markets in Europe opened with heavy losses only to see almost all of that pared now as we look towards North American trading as equities gradually climbed on the session.

US futures also turned around a loss of around 0.8% to 0.9% to be up by 0.3% to 0.5% now, with the swing in the mood helping to put some light pressure on the dollar.

EUR/USD moved up from 1.1570 to 1.1600 while GBP/USD was a notable gainer as the pair climbed from a low of 1.3435 mid-way through the session to 1.3540.

With Treasury yields keeping more subdued, USD/JPY also stuck around 111.10-20 for the most part since Asia Pacific trading.

Meanwhile, AUD/USD moved up from a low of 0.7193 to trade at the highs for the day now around 0.7260 with buyers pushing back above key near-term levels.

Even USD/CAD also turned around gains from 1.2730 early on in the day to 1.2650-60 levels now despite oil prices looking a fair bit sluggish.

It's all about risk sentiment as we look to close out the week and the turnaround so far today hints that dip buyers are not exactly down for the count yet, that is despite a number of risks faced by the market in recent weeks and the seasonally weaker period during the transition from September to October.

October 02, 2021 at 12:05AM
Justin Low
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