ForexLive European FX news wrap: Dollar runs hot into the final stretch of the week

<p>Headlines:</p><ul><li><a target=“_blank“ href=““>Things are all lining up for the dollar towards the end of the week</a></li><li><a target=“_blank“ href=““>The bond market starts to make a move</a></li><li><a target=“_blank“ href=““>Stocks bleed lower in European morning trade</a></li><li><a target=“_blank“ href=““>Germany July PPI +5.3% vs +0.6% m/m expected</a></li><li><a target=“_blank“ href=““>UK July retail sales +0.3% vs -0.2% m/m expected</a></li><li><a target=“_blank“ href=““>Eurozone June current account balance €4.2 billion vs -€4.5 billion prior</a></li></ul><p style=““ class=“text-align-justify“>Markets:</p><ul><li>USD and CHF lead, NZD lags on the day</li><li>European equities lower; S&P 500 futures down 0.9%</li><li>US 10-year yields up 6.3 bps to 2.943%</li><li>Gold down 0.4% to $1,752.08</li><li>WTI crude down 2.2% to $88.50</li><li>Bitcoin down 8.4% to $21,445</li></ul><p style=““ class=“text-align-justify“>The dollar refused to wait around in trading yesterday and with its push higher, it is triggering a broader reaction in markets today. The tail is wagging the dog as the dollar jump also sees Treasury yields push higher, vindicating the advance in USD/JPY firmly above 135.00 yesterday. The pair has extended gains to today and is now trading above 137.00 as things fall into place for the greenback.</p><p style=““ class=“text-align-justify“>10-year Treasury yields are finally ticking above its 100-day moving average after having furiously been kept below that for several weeks now. The mood is helped as inflation worries return after having seen a record jump in German producer prices earlier in the day.</p><p style=““ class=“text-align-justify“>Meanwhile, equities are looking fragile as European indices slumped while US futures extended its early decline into a heavier drop at the moment ahead of North America trading.</p><p style=““ class=“text-align-justify“>With China also seeking to weaken the yuan, the dollar is in a good spot against the major currencies bloc. EUR/USD extended its fall from 1.0070 to 1.0050 while GBP/USD slumped heavily from 1.1910 to 1.1820 on the session. As risk trades falter, USD/CAD pulled higher from 1.2960 to 1.3000 and AUD/USD fell from 0.6915 to 0.6880 with the dollar staying firm across the board.</p><p style=““ class=“text-align-justify“>The technicals are also favouring the greenback at the moment and barring a shift in broader markets, the dollar looks poised to head into the weekend as king of the hill.</p>

This article was written by Justin Low at

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