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ForexLive European FX news wrap: Dollar keeps steadier, equities remain cautious

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Headlines:

Markets:

  • JPY leads, AUD lags on the day
  • European equities mostly a little lower; S&P 500 futures down 0.1%
  • US 10-year yields up 1.7 bps to 4.058%
  • Gold down 1.3% to $2,019.64
  • WTI crude down 2.7% to $71.75
  • Bitcoin up 2.2% to $44,945

It was a quieter session after the heavy action last Friday, as markets are looking to settle in on the new week while waiting on the US CPI data on Thursday. It will likely end up being a tale of two halves, one being the price behaviour prior to the key risk event and one after that later in the week and on Friday as well.

But for now, we’re seeing some continuation from last week’s action with the dollar keeping steadier while risk trades in general are staying guarded. Stocks slipped early in European morning trade before recovering losses but are still looking more tepid ahead of US trading later.

The aussie and kiwi are beaten down as such, with AUD/USD down 0.5% to 0.6680 and looking for its sixth daily drop in seven days. Besides that, the dollar is mostly little changed but advanced from 144.30 to 144.55 against the yen as Treasury yields hold up.

The bigger losers today are in the commodities space with oil down over 2% and gold down over 1% on the day. Meanwhile, Bitcoin is enjoying itself amid continued headlines surrounding the ETF launch. This time, it is to do with firms looking to undercut each other on ETF fees ahead of the proposed launch date – which could be some time this week.

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