Wednesday , 6 November 2024
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Forexlive European FX news wrap: Choppy price action amid lack of catalysts

Markets:

  • NZD leads, JPY lags on the day
  • European equities lower;
    S&P 500 futures down 0.45%
  • US 10-year yields up 1 bps to 4.206%
  • Gold
    up 0.61% to $2,735
  • WTI
    crude up 0.94% to $71.22
  • Bitcoin
    down 0.08% to $67,300

It’s been
another slow session as the lack of key economic releases and limited news flow
kept the price action pretty rangebound.

The US
Dollar continues to get some support from higher Treasury yields and if the
recent days is something to go by, we might see some more legs higher in the US
session.

Gold erased
all of the yesterdays’ decline and it’s now trading right near the all-time
high. It’s been ignoring the rise in real yields, so it will be interesting to
see who gives in.

In the equity
markets, we continue to see some consolidation around the highs as the markets
are probably looking for catalysts to push into new highs and for now are
getting pressures by higher yields.

Unfortunately,
we have to wait until Thursday to get some market moving data with the releases
of the Flash US PMIs and the US Jobless Claims.

For now, it’s
more about capital preservation until we get to one of the most important
events of the year in November, that is the US election. There’s a good
argument that the markets have been already positioning into a Trump victory.

Time will
tell.

This article was written by Giuseppe Dellamotta at www.forexlive.com.

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