Headlines:
Markets:
- GBP leads, CHF lags on the day
- European equities higher; S&P 500 futures up 0.2%
- US 10-year yields up 1.2 bps to 4.108%
- Gold up 0.6% to $2,709.82
- WTI crude down 0.4% to $70.40
- Bitcoin up 0.6% to $67,809
It was another quiet session with some light market moves at best before we get into the final stretch of the week.
The dollar is slightly on the softer side but remains in prime position to try and build on the gains so far in October. EUR/USD is up slightly by 0.2% to 1.0850 while GBP/USD is up 0.3% to 1.3045 on the day. The latter was helped by stronger UK retail sales data as well, with the pair briefly touching a high of 1.3071 earlier.
Besides that, USD/JPY saw a quick whipsaw from 149.85 to 149.58 on the back of some BOJ headlines which reaffirmed that the central bank will stay sidelined in October. The pair was then quickly bought back up to keep around 150.00 now, down 0.1% on the day.
Insight:
Positive risk sentiment and strong retail sales data are driving currency movements, with the GBP and EUR gaining against the USD. The BOJ’s decision to stay sidelined has led to fluctuations in USD/JPY but the pair remains relatively stable. Chinese stocks and the yuan are seeing gains, contributing to a positive risk mood that is lifting European indices and US futures.
There weren’t any major headlines to guide markets, so this is all roughly a continuation of sentiment during the month. Take gold for example, as it runs up above $2,700 to fresh record highs once more.
The dollar might be down slightly but it doesn’t take away from the upside momentum in the weeks before, at least not yet.
Have a great weekend, everyone.
