Headlines:
A slower start for major currencies so far todayOil jumps amid report that OPEC+ is discussing a delay to planned output hike in OctoberReminder: There is no ADP roulette on the agenda todayEurozone August final services PMI 52.9 vs 53.3 prelimUK August final services PMI 53.7 vs 53.3 prelimUS MBA mortgage applications w.e. 30 August +1.6% vs +0.5% priorGerman economy expected to contract this year, says Kiel InstituteGerman trade lobby sounds warning as recession clouds circle
Markets:
JPY leads, USD and CAD lag on the dayEuropean equities lower; S&P 500 futures down 0.4%US 10-year yields down 3.8 bps to 3.806%Gold down 0.2% to $2,489.13WTI crude up 1.0% to $70.86Bitcoin down 2.9% to $56,510
It was a bit of a draggy session for major currencies as there wasn’t too much to work with.
The dollar is marginally lower at the balance, but mostly keeping lightly changed against the rest of the major currencies bloc outside of the Japanese yen. USD/JPY is down 0.4% to just under 145.00, continuing to weave in and out around the figure level. Meanwhile, the rest of the dollar pairs are just 0.1% changed among one another thus far on the day.
That despite equities staying pressured after the selloff yesterday. S&P 500 futures remain pinned down since Asia but the losses aren’t getting much worse as we look towards US trading at least. Bond yields are continuing to look heavy and that is perhaps weighing on USD/JPY as well. 10-year Treasury yields are down nearly 4 bps to around 3.80% currently.
Among the headlines, we did see one involving the oil market. A Reuters report noted that OPEC+ is considering delaying their planned output hike in October. And that saw oil prices bounce back a little with WTI crude moving up by 1% away from the $70 mark before that.
In other markets, gold was under some light pressure earlier in falling to $2,472 but is now climbing back up to $2,489 on the day. The push and pull continues as price action continues to consolidate in and around $2,500, awaiting the next big move.
Coming up later, we will have the Bank of Canada policy decision and US JOLTS job openings as key risk events for markets.
This article was written by Justin Low at www.forexlive.com.
