ForexLive European FX news wrap: Dollar eases as equities recover ahead of US PCE data

Headlines:

Markets:

• CHF leads, NZD lags on the day
• European equities higher; S&P 500 futures flat
• US 10-year yields down 0.8 bps to 4.124%
• Gold up 0.1% to $2,020.66
• WTI crude down 1.0% to $76.60
• Bitcoin up 3.8% to $41,408

There wasn’t much to work with on the session but the dollar took a slight knock as equities recovered early losses in European trading.

US futures were more subdued early on, with tech shares leading the downside, after Intel reported softer Q1 guidance in its earnings call. S&P 500 futures were down as much as 0.5% but has pared all of that now while Nasdaq futures are down just 0.2% after having been down roughly 0.8% earlier in the day.

In Europe, French stocks are leading the way with luxury stocks gaining after LVMH topped revenue estimates in Q4 last year. A mixed start has now translated to stronger gains for regional indices amid a rebound in US futures as well.

In FX, the dollar was steadier early on but is now slightly on the softer side as we await the US PCE price report. USD/JPY remains steady around 147.75 but EUR/USD moved up from 1.0815 to 1.0870 and is holding at the highs for the day currently. GBP/USD also recovered from around 1.2680 to 1.2730 while USD/CHF dropped from 0.8680 to 0.8620 on the session.

Besides some light flows and a recovery in equities sentiment, there wasn’t much else going on. The bond market is a bit of a dud today, so that’s not helping.

All eyes now turn towards the US PCE price report to see what that has to offer to the inflation picture next.