ForexLive European FX news wrap: Dollar gains on higher yields, stocks struggle | Forexlive
Headlines:
Markets:
- USD leads, GBP lags on the day
- European equities lower; S&P 500 futures down 0.6%
- US 10-year yields up 7.5 bps to 4.30%
- Gold down 0.3% to $1,622.97
- WTI crude up 0.4% to $84.88
- Bitcoin down 0.5% to $18,934
Higher bond yields is the name of the game as we look to close out the week and that is putting a drag on broader market sentiment while underpinning the dollar in European morning trade today.
The greenback is also helped by another surge higher in USD/JPY as the bulls push the agenda to 151.50 levels at the moment, with a notable absence from Japanese authorities – even from a verbal standpoint. I can’t help but feel that they might come in before the week but we’ll see how things go later in North America trading.
10-year Treasury yields are up over 7 bps to 4.30% as the selling in bonds intensifies, keeping the pressure on equities. S&P 500 futures are down 0.6% while Nasdaq futures are down 1.0% on the day currently.
In turn, that is keeping the dollar bid with EUR/USD stumbling from 0.9800 to 0.9740 while GBP/USD has been pressed lower from 1.1220 to 1.1100 as sellers push the pair to fresh one-week lows with the UK outlook short of confidence.
Commodity currencies are also unable to catch a break with USD/CAD up 0.4% to 1.3815 while AUD/USD is dragged lower by 0.7% from 0.6280 earlier to 0.6231, closing in on the lows yesterday and support at 0.6200.
In the commodities space, gold is also threatening a push towards its September lows around $1,615-21 and a break below that will set the course for a move towards $1,600 next as real yields continue to climb.