ForexLive European FX news wrap: Dollar a touch softer, equities firmer

Forex news from the European trading session - 26 October 2021

Headlines:

Markets:

• GBP leads, JPY lags on the day
• European equities higher; S&P 500 futures up 0.4%
• US 10-year yields down 2 bps to 1.615%
• Gold down 0.3% to $1,802.30
• WTI up 0.3% to $84.03
• Bitcoin up 0.3% to $62,750

It was a quiet session for the most part with few notable headlines as the calendar day was also rather bare in European morning trade.

Things started off on a lighter note but risk sentiment kept firmer throughout and eventually that is spilling over to some dollar and yen softness on the day now.

After record closes for the Dow and S&P 500 yesterday, the positive mood is continuing on the new day with tech leading the charge once again as seen in US futures.

EUR/USD started the session around 1.1600 before climbing 1.1625 and keeping thereabouts while GBP/USD advanced from 1.3780 to 1.3830 as UK inflation expectations for the year ahead also surged to its highest since 2008.

USD/JPY is keeping around 113.90-00 for the most part though as even softer bond yields isn't really helping to aid the yen on the day so far.

Meanwhile, commodity currencies are keeping a slight advance with AUD/USD seen up to 0.7515 after having eased to 0.7490 briefly during the session. USD/CAD is also keeping slight gains in a push from 1.2380 to 1.2350 as oil prices are also holding up.

WTI is trading up slightly by 0.3% to just above $84 ahead of North American trading.

There isn't much else of note as we continue to gear towards major central bank meetings later in the week, alongside a slew of key tech earnings releases as well.

October 26, 2021 at 11:54PM
Justin Low
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