ForexLive European FX news wrap: Yen holds firmer in quiet trading

Headlines:

• It’s a slower start to the new week so far
• What are the main events for today?
• Weekly update on interest rates expectations
• Fed’s Kashkari: It is appropriate to have debate on whether to cut rates in September
• SNB total sight deposits w.e. 16 August CHF 464.9 bn vs CHF 463.1 bn prior

Markets:

• JPY leads, USD and CAD lag on the day
• European equities a little higher; S&P 500 futures flat
• US 10-year yields down 1.7 bps to 3.875%
• Gold down 0.6% to $2,492.62
• WTI crude down 0.7% to $76.08
• Bitcoin down 1.7% to $58,250

It was a much slower session as markets calmed down following the more hectic events last week.

There isn’t much on the economic calendar today and there won’t be much until we really get to Thursday. So, that might invite a bit of a lull in broader market sentiment this week.

But the Japanese yen isn’t one to be wanting to sit down though. USD/JPY fell early on in Asia before continuing its drop to 146.10 in early European trading. That was followed by a further drop to 145.18 before the pair moved back up to hover around 146.00 now, still down 1% on the day.

The dollar in general remains more sluggish, with lower bond yields also weighing. EUR/USD is hovering at 1.1040, up 0.1%, while USD/CHF is down 0.2% to 0.8640 currently.

The antipodean currencies are also higher against the dollar, helped by a stronger yuan as well. AUD/USD up 0.4% to near 0.6700 while NZD/USD is up 0.4% as well to 0.6075 at the moment.

In the equities space, investors are keeping a more tentative approach after the gains last week. European indices are marginally higher while US futures are flat, with eyes on Fed chair Powell’s appearance at Jackson Hole later in the week.

This article was written by Justin Low at www.forexlive.com.