Dollar back in favour as the dark clouds emerge | Forexlive

So far today, euro area CPI data has served to reaffirm that price pressures are not going to dissipate that easily after the drop in March – which owed much to an adjustment on base effects. The only good news is that Spanish core annual inflation did fall in April and that could also translate to what we could see in other countries and next week’s Eurozone reading.

But as inflation remains sticky, the less optimistic German Q1 GDP data is now weighing on the market mood and causing some jitters to resurface. Equities are starting to trickle lower while bond yields are staying rather heavy, not helped by the BOJ policy decision from earlier in the day.

This is seeing the dollar catch a bid in European morning trade, with the euro and pound now weighed down to the lows for the day against the greenback. EUR/USD is down 0.4% to 1.0980 while GBP/USD is down 0.2% to 1.2455 as the upside momentum begins to wane going into the final stages of the week.

AUD/USD has also dropped to fresh seven-week lows of 0.6585 as the pair is now down 0.7% and contesting daily support now. The March lows at 0.6563-67 is also one to watch ahead of the close today: