ForexLive European FX news wrap: Dollar gets a case of the Waller hangover | Forexlive

EUR/USD is up 0.4% to 1.1646 as buyers look to finally push above the 100-hour moving average of 1.1631, reaffirming a more neutral near-term bias now. USD/JPY is still little changed though, just marginally lower around 148.40-50 levels mostly.

GBP/USD is the other that also secured a climb above its own 100-hour moving average of 1.3418, now up 0.3% to 1.3450 on the day. Meanwhile, commodity currencies are also holding a little higher with USD/CAD down 0.2% to 1.3720 and AUD/USD up 0.5% to 0.6520 in recovering most of yesterday’s losses.

The moves are coming despite the fact that Fed funds futures are still reaffirming that traders are not looking for a rate cut in July. However, Waller’s remarks might spark a more heated debate at the Fed about cutting rates in the months to come. So, just be wary of that.

The dollar drop also comes as bond yields are ticking lower with 10-year yields back down to 4.43% and 30-year yields easing back under 5% to 4.98% on the day.

In the equities space, European stocks kick started the day with some pizazz but that has very much fizzled during the session. The DAX and UK FTSE were eyeing fresh record highs but have to pull back on that as the weekly gains are also under threat now following yesterday’s strong rebound.

US futures are also keeping a more tentative mood, holding flattish after some slight gains earlier in the day.

In other markets, gold is sitting higher at around $3,355 but remains more rangebound in the bigger picture still. And we have Bitcoin continuing to keep around record highs as other cryptocurrencies are inviting broader rallies after the jump in the past week.

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