ForexLive European FX information wrap: Greenback retains barely decrease, eyes on Trump once more

Headlines:

• Weekly replace on rate of interest expectations
• ECB’s Vujčić: Market expectation for 3 extra charge cuts this yr is just not unreasonable
• BOE’s Capsule: I do count on we are able to lower charges additional
• PBOC says will implement appropriately free financial coverage
• UK This fall preliminary GDP +Zero.1% vs -Zero.1% q/q anticipated
• UK December month-to-month GDP +Zero.four% vs +Zero.1% m/m anticipated
• Eurozone December industrial manufacturing -1.1% vs -Zero.6% m/m anticipated
• Germany January closing CPI +2.three% vs +2.three% y/y prelim
• Switzerland January CPI +Zero.four% vs +Zero.four% y/y anticipated

Markets:

• CHF leads, AUD lags on the day
• European equities greater; S&P 500 futures flat
• US 10-year yields down four bps to four.593%
• Gold up Zero.5% to $2,917.99
• WTI crude down 1.1% to $70.49
• Bitcoin down 1.9% to $95,841

It is one other session the place European merchants are left ready on key headlines from the US session once more later.

Trump continues to be a key affect in markets and we’re awaiting extra headlines on reciprocal tariffs and any additional developments on his mediation of the Russia-Ukraine battle.

The greenback continued its post-CPI droop in Asia and partly throughout European buying and selling as properly right this moment. The dollar reversed positive aspects after the report yesterday and the temper music is constant.

EUR/USD touched a excessive of 1.0440 however is now simply up Zero.1% at round 1.0393 on the day. GBP/USD additionally raced as much as a excessive of 1.2519 after a stronger UK This fall GDP report earlier than settling up by Zero.1% to 1.2460 now.

As an alternative, it was USD/JPY that proved to be a good mover within the session as Treasury yields slipped farther from the highs yesterday. The pair is down Zero.four% to 153.80 ranges now, down from round 154.40 earlier as 10-year yields within the US dip again below four.60%.

In the meantime, the franc was additionally a mover on the session with EUR/CHF falling Zero.5% to Zero.9435 amid a rejection of its 200-day shifting common once more.

US futures additionally misplaced some early positive aspects and that appears to be weighing on the antipodeans forward of the North America session. As for European indices, they’re unfazed and eyeing a seventh straight week of positive aspects to begin the yr. Sizzling. 🔥

All eyes are on the US once more the place we’ll have PPI information and the weekly jobless claims to be careful for. However it’s possible that Trump headlines will steal the present as soon as once more, because it has been since he took to the White Home final month.

This text was written by Justin Low at www.ubaidahsan.com.



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