ForexLive European FX news wrap: Dollar struggles continue amid mixed markets | Forexlive
Headlines:
Markets:
- JPY leads, CAD lags on the day
- European equities mixed; S&P 500 futures up 0.2%
- US 10-year yields down 2.6 bps to 4.472%
- Gold down 0.8% to $3,220.63
- WTI crude down 1.1% to $62.97
- Bitcoin down 0.6% to $103,920
There weren’t much significant headlines on the session and market players were left to fend for themselves for the most part.
Trump is in Saudi Arabia this week, so his attention is diverted to other geopolitical matters for the time being. He offered up some comments about the Middle East and also on the potential meeting with Russia and Ukraine in Turkey. Besides that, there weren’t much interesting remarks from the man today.
In terms of data, German and Spanish inflation numbers reaffirmed that there is still work to be done by the ECB even if rate cuts are still set to continue. And we got some token remarks from central bank speakers from the Fed, ECB, and BOE for the most part.
As for market action, major currencies are seeing decent moves with the dollar in particular standing out. The greenback is continuing to stutter and has surrendered pretty much all of its gains from the opening gap higher on Monday.
EUR/USD moved up to a high of 1.1265 during the session but is now still up 0.3% at 1.1220 on the day. Meanwhile, USD/JPY also fell to a low of 145.60 before picking up a little to 146.16 now – down 0.9% on the day.
Elsewhere, GBP/USD is up 0.2% to 1.3335 while AUD/USD is marginally higher by 0.1% to 0.6472. The latter is seeing large option expiries at 0.6475 and 0.6500 in play, with the ones at the figure level limiting gains on the session.
In other markets, European stocks are looking rather timid today with little conviction. US futures were down initially but have picked up a little to be up 0.2% now. The dip buying could be suggestive of a continuation of gains later when Wall Street enters the fray.
In the commodities space, gold is down alongside oil. So, that is offering up a bit more of a mixed picture in broader markets. Treasury yields are also sitting lower but are still hanging on the high side with 30-year yields hovering close by the 5% mark. So, that’s still something to watch out for in the days ahead.
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