ForexLive European FX news wrap: Dollar stays in cruise control for the most part

News

Headlines:

Markets:

  • EUR leads, AUD lags on the day
  • European equities lower; S&P 500 futures up 0.1%
  • US 10-year yields up 2.3 bps to 4.650%
  • Gold down 0.4% to $2,371.94
  • WTI crude down 0.2% to $85.19
  • Bitcoin down 0.9% to $62,610

The dollar isn’t flexing its muscles too much in European trading today. However, it remains in pole position on the grid following the moves since last week. There is no major extension of gains but the dollar is still poised when you analyse things by the charts.

EUR/USD is only up 0.1% to 1.0632, stuck within a narrower range today. But the pair has the makings of a drop towards 1.0500 next in the bigger picture. Meanwhile, higher Treasury yields is underpinning USD/JPY with the pair seen up 0.2% to 154.65.

The UK labour market report today was rather mixed, leaning slightly on the softer side. The jobs data was weak but wages are staying high. It barely produced much of a reaction in the pound though, with cable looking flat at 1.2450 on the day.

Elsewhere, the aussie and kiwi are laggards amid a softer risk mood and some selling in the Chinese yuan during Asia trading.

In the equities space, European indices are all down over 1% in catching up to the losses in Wall Street yesterday. But we are seeing a slight turnaround in the mood as US futures are now positive, with S&P 500 futures up 0.2%.

As for commodities, gold is down slightly amid a choppier start to the week for precious metals. Bitcoin is also down and contesting support in and around the $61,000 mark on the day.

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