investingLive European markets wrap: Dollar steady, gold rebounds ahead of the Fed | investingLive
Central banks:
US-China headlines:
Market headlines:
Market moves:
- AUD leads, CHF lags on the day
- European equities mixed; S&P 500 futures up 0.3%
- US 10-year yields up 1 bps to 3.993%
- Gold up 1.7% to $4,018.15
- WTI crude oil up 0.4% to $60.40
- Bitcoin up 0.3% to $113,199
Markets continue to gear towards the major events this week, with the first one up later today in the form of the FOMC meeting. Just before that though, there will be the Bank of Canada announcing their own policy decision with a 25 bps rate cut expected. As for the Fed, they are also expected to do the same in cutting rates by 25 bps but all eyes will be on Fed chair Powell’s press conference in dictating the market mood for the second half of this week.
In the lead up to that, the dollar is keeping steadier across the board with light gains on the day. EUR/USD is down 0.1% to 1.1640 with USD/JPY keeping up by 0.1% to 152.20 levels currently. GBP/USD is feeling heavy as it runs down to test 1.3200, down 0.4% on the day to around 1.3215 at the moment.
Amid the optimism ahead of Trump’s meeting with Xi Jinping tomorrow, the aussie is the one benefiting the most so far this week with AUD/USD up another 0.2% to near 0.6600 on the day.
In the equities space, European stocks remain more tepid with month-end approaching while US futures are pointing higher again after Nvidia and tech shares carried the advance yesterday. So far, US-China optimism continues to fuel gains but the Fed will be the next key risk event to deal with later.
Elsewhere, gold is seen making headway as dip buyers stepped in strongly near $3,900 overnight to send prices back above $4,000 today. There’s still a tug of war going on but price action certainly shows that dip buyers are not going to be so easily deterred despite the pullback from last week.