Currencies mixed, big week ahead

Forex news from the European trading session – 26 April 2021

Headlines:

Markets:

• AUD leads, CHF lags on the day
• European equities mixed; S&P 500 futures down 0.1%
• US 10-year yields up 3.5 bps to 1.593%
• Gold down 0.1% to $1,775.08
• WTI down 1.3% to $61.30
• Bitcoin up 11.4% to $53,645

It was a relatively quiet session as the market treaded with caution in anticipation of a key risk events still to follow later in the week.

The dollar kept mildly weaker but recovered some ground against the euro late on with EUR/USD easing from 1.2100 to 1.2085, with key resistance trendline at 1.2119 still holding any major upside break at bay for the time being.

USD/JPY held lower at around 107.70-80 before pushing up to 108.00 as Treasury yields start to move to the highs for the day, with 10-year yields up to 1.59%.

Commodity currencies fared better against the greenback with AUD/USD extending a push towards 0.7800 while USD/CAD tracked lower to 1.2440 levels as sellers finally push through daily support at 1.2476-00 since Friday trading last week.

Elsewhere, US futures are more guarded despite the gains at the end of last week with S&P 500 futures down 0.1%, Nasdaq futures down 0.3%, while Dow futures are up 0.1%.

US durable goods orders later today will kick off a big week in terms of event risks as the market will have to navigate through PCE inflation data (Friday), the FOMC meeting (Wednesday), OPEC+ meeting (Wednesday), and a heavy slate of key earnings releases (big tech) over the course of the next few days.