Forex news for North American trade on October 15, 2021:
Markets:
The US retail sales report was a strong surprise but the market reaction was minimal. Later, flows appeared into the London fix with a distinct element of USD selling. That knocked USD/JPY down to 114.00 from 114.42 and hit the dollar elsewhere as well. It later

Closing changes for the main US equity markets:
On the week:

Bonds continue to price in hikes
The bond market is having a rethink on inflation and interest rates today. US 2-year yields are up 4.5 basis points today to 0.40%. It’s the highest since the start of the pandemic as the front end of the curve looks to make a move.

WTI crude oil up 97-cents to $82.28
What a run it’s been for the crude oil bulls in basically a straight line to $82 from $62 on August 23.
This is the eighth straight week of gains in crude and the highest close since 2014. Today is contract expiration and there’s moderate backwardation through the contract table,

Forex news from the European trading session – 15 October 2021
Headlines:
Markets:
– GBP leads, JPY lags on the day
– European equities higher; S&P 500 futures up 0.4%

„Traffic light“ coalition impending for Germany
Reuters reports with the above headline, citing sources familiar with the matter. This was the expected outcome after the election but it is taking a while to sort out. Some context on what this could mean for euro area assets .

Remarks by the Chinese central bank
Well, at least they’re not using the T-word but it is rather implied. In any case, with the shift to ‚common prosperity‘ focus and the power crunch hitting, China is likely to maintain more easy policy in order to support the economic recovery from the pandemic still.

Nikkei reports on the matter
This was also rumoured back in September already but I reckon we’re nearing an official announcement in the days ahead, so there is a rerun via local media.

PBOC reaffirms that Evergrande isn’t going to pose a major threat to the Chinese financial system
They are also urging developers and shareholders to fulfil debt obligations and have asked banks to keep stable, orderly loans to the real estate sector.

Forex news from the European trading session – 14 October 2021
Headlines:
Markets:
– NZD leads, JPY lags on the day
– European equities higher; S&P 500 futures up 0.8%