ForexLive European FX news wrap: Tentative mood as stocks keep steady for now, Powell eyed

Headlines:

Markets:

• USD mixed
• European equities higher; S&P 500 futures up 0.2%
• US 10-year yields up 1 bps to 4.245%
• Gold down 0.1% to $1,916.18
• WTI crude up 1.2% to $80.02
• Bitcoin up 0.3% to $26,092

It was a quiet session in terms of headlines as markets are waiting on the Jackson Hole symposium or more specifically Fed chair Powell’s speech later. Personally, I don’t expect anything new from Powell but it has been a while since he last spoke and markets are hoping for something to work with.

Equities are keeping steadier on the day but as has been the case in the past two weeks, the heavy selling tends to only hit in US trading. So, watch out for now. I wouldn’t look much into the slight gains today unless Wall Street follows up on that.

The dollar was slightly higher earlier on but has seen gains pared during the session. EUR/USD looked to keep with the downside break in a push to 1.0770 but is now being rechecked back at 1.0800. Similarly, GBP/USD touched a low of 1.2560 but has reversed higher to 1.2610 for now at least.

All eyes will be on equities sentiment once again and if we do see another ugly session ahead, that should keep the dollar underpinned.

I wish you all a pleasant Friday and a wonderful weekend ahead!