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ForexLive European FX news wrap: Dollar and oil pull back a little

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Headlines:

Markets:

  • AUD leads, USD lags on the day
  • European equities mixed; S&P 500 futures down 0.1%
  • US 10-year yields up 3.7 bps to 4.647%
  • Gold flat at $1,875.15
  • WTI crude down 0.4% to $93.28
  • Bitcoin up 0.8% to $26,446

The two main outperformers this week are the laggards today, that being the dollar and oil.

The latter raced higher in Asia trading to $95 but is marked down by 0.4% now to $93.27 while the greenback is down across the board as it gives back some of the gains this week.

EUR/USD tested waters below 1.0500 for the first time since January before bouncing up to 1.0540 levels while USD/JPY is still caught out by intervention fears, down 0.2% to 149.30 currently.

All of this comes despite higher Treasury yields on the day, with 10-year yields in the US touching above 4.64%. And that is still keeping equities rather nervous, with some selling pressure in Europe which was met by dip buyers – who seem to be keeping things interesting ahead of month-end and quarter-end.

In terms of data, we got Spanish and German inflation numbers. The former continues to reaffirm stickier price pressures while the latter is showing a decent drop, which fits expectations. That being said, the monthly readings are still rising and alongside higher oil prices, that just means the ECB cannot quite breathe easy just yet.

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