December 10, 2022

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Oil bounces, markets steady awaiting Fed minutes

2 min read

Forex news from the European trading session – 7 July 2021

Headlines:

Markets:

  • NZD leads, JPY lags on the day
  • European equities higher; S&P 500 futures up 0.2%
  • US 10-year yields down 0.2 bps to 1.348%
  • Gold up 0.5% to $1,805.90
  • WTI up 1.9% to $74.74
  • Bitcoin up 2.6% to $34,830

The market is holding steadier for the most part, counting down to the release of the FOMC meeting minutes later in the day – even as the bond market continues to send a mixed signal about inflation and the general outlook.

10-year Treasury yields sunk to its lowest since late February, but is now holding closer to 1.35% as the bid in bonds continue to play out on the week.

Equities were unfazed though, with European indices bouncing back while Nasdaq futures are surging ahead once again, being up 0.6% on the session.

In FX, commodity currencies are holding slight gains with NZD/USD moving up from 0.7010 to 0.7050 while USD/CAD eased from 1.2460 to 1.2435.

The loonie is also helped by a bounce in oil after yesterday’s tumble, with price climbing from $73.20 to $74.74 currently as dip buyers step in rather quickly.

The dollar is keeping in a mixed spot with the yen also mildly softer ahead of US trading.

That said, all eyes will stay on how the bond market reacts, in particular in the aftermath of the FOMC meeting minutes release. While inflation expectations are building, it is also unwise to ignore the charts and that is something worth paying attention to.

In other news, is it coming home? 🏴󠁧󠁢󠁥󠁮󠁧󠁿x🇩🇰




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