The European FX market saw a bit of a slow start today, with stocks edging lower in the morning trade. Major currencies didn’t show much movement either. Bonds were in focus as there wasn’t much else to focus on. European equities opened slightly softer today.
Eurostoxx futures were up by 0.1% in early European trading. The FX option expiries for 22 October at 10 am New York cut were also on traders’ radars. Meanwhile, the Chief Economist of the Bank of England criticized the Office for National Statistics for the poor quality of jobs data.
Chinese equities appeared cautious this week, while the USD/JPY pair found support from higher yields but faced key resistance levels. The BOJ’s Executive Director clarified that they are not targeting specific FX levels. The pair rose above 150.90 following subdued comments from Japan.
In terms of market performance, the New Zealand Dollar was leading while the Japanese Yen lagged behind. European equities were lower, with S&P 500 futures down by 0.45%. US 10-year yields rose by 1 basis point to 4.206%.
Gold prices were up by 0.61% at $2,735, erasing yesterday’s losses. WTI crude oil also rose by 0.94% to $71.22, while Bitcoin dipped slightly to $67,300.
The trading session was slow due to the lack of significant economic releases and limited news flow. The US Dollar continued to receive support from higher Treasury yields. Gold traded near its all-time high, despite the increase in real yields. Equity markets were consolidating around highs, waiting for catalysts to push them higher amid pressure from rising yields.
Market participants are eagerly awaiting Thursday’s release of the Flash US PMIs and US Jobless Claims for potential market-moving data. With the US election approaching in November, investors are cautious and may be positioning themselves for different outcomes. Only time will tell how the markets will react as the election date draws nearer.
