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Little change among major currencies going into European trading

  
Analysis, Forex

Quieter tones prevail once again so far on the day

That said, risk sentiment is still rather soggy and that may fuel a bit more of a defensive tone as we look towards the start of European trading later.
FX
While FX is keeping in tighter ranges, US futures are down roughly 0.3% with 10-year Treasury yields keeping around 1.33% after the drop yesterday.
There was quite a bit of push and pull in the dollar overnight and that may yet keep the course as the market sorts itself out on the week. For today though, the ECB policy meeting will be a key risk event to watch for any moves.
EUR/USD is keeping around 1.1815-20 following the drop yesterday, with the 1.1800 level still holding though sellers are maintaining near-term control for now.

ICYMI – Ukraine’s parliament passed a law to legalize cryptocurrency

  
Analysis, BITCOIN
  • legalizing and regulating cryptocurrency and other virtual assets like tokens in Ukrain
Up ’til now crypto law in Ukraine appears to have been a bit of a mystery, not legal, not illegal. The approved bill goes some way clarifying protections for crypto users in the country. It will become law when the bill is signed by President Volodymyr Zelensky.
More at that link above if you are interested.
BTC update:
Ukraine Bitcoin  

Kaplan says he would like to taper ASAP

  
  Analysis

allas Federal Reserve Bank President Robert Kaplan says he’d like to taper “At the earliest opportunity”

Earlier comments from Kaplan:
  • Fed’s Kaplan makes the case for an October taper
  • Kaplan says COVID-19 resurgence is having a negative impact on travel, hospitality, leisure

 

There were questions on this submitted to him at his “town hall” (virtual) meeting, but they were not used. Given the title of the event was a Discussion of Economic Developments and Implications for Monetary Policy, it appears that was where Kaplan’s focus was.

Have to wonder if the boss will have a word with him:
Dallas Federal Reserve Bank President Robert Kaplan says he'd like to taper "At the earliest opportunity"

ICYMI – Russian gas giant Gazprom will Nord Stream 2 gas flow from October 1

  
  Analysis

Bloomberg cite unnamed sources for the info:

  • Gazprom is planning to start flowing natural through the first leg of the Nord Stream 2 link to Germany on October 1
  • timing of actual flows into Europe’s gas grid will still depend on a decision by the German regulator
Bloomberg pieces are often gated, here is an ungated link if you are after more.
  • Natural gas prices in Europe are at all-time highs and inventories there are extraordinarily tight ahead of the winter.
The long-awaited approval from German regulators may well come sooner rather than later.
nord stream 2

US EIA oil forecasts sees lower US supply this year

  
Analysis, Crude

The latest forecasts from the EIA

  • Sees 2021 US output falling to by 200K bpd this year vs -160K bpd in prior forecast (to 11.08 mbpd)
  • Sees 2022 output rising 640K vs 650K bpd prior
  • Sees 2021 demand up 1.55 mbpd vs 1.58 mbpd prior
  • Sees 2022 demand rising 890K bpd vs prior forecast of 860K bpd prior
These are minor changes and forecasting oil supply and demand is very difficult (as the EIA’s record proves), especially coming out of a pandemic. I focus on the direction of changes and overall the signal is that supply is disappointing.
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