ForexLive European FX news wrap: Dollar mixed, more central bank pushback | Forexlive


Headlines:

Markets:

AUD and NZD lead, JPY lags on the dayEuropean equities lower; S&P 500 futures up 0.2%US 10-year yields down 2.1 bps to 3.907%Gold up 0.2% to $2,023.54WTI crude up 0.9% to $72.09Bitcoin down 3.2% to $40,890

It was a quiet session for the most part, with the dollar trading more mixed. The notable headlines were from major central banks, who continue to push back against market pricing for rate cuts for next year. But this time around, traders aren’t having any of it.

Vasle and Kazimir both reaffirmed that the ECB isn’t considering rate cuts yet but traders are still seeing ~57% odds of a March rate cut. Meanwhile, Mester is also helping Williams on Friday to walk back some of the remarks from Powell’s press conference last week. Then, we saw Broadbent came out to say that the BOE is still not convinced on the wages front just yet to consider any policy pivot.

All of that didn’t do much to shake markets though. The dollar remains steady overall but trades a bit more mixed on the day. USD/JPY gained from 142.40 to 142.80 despite lower yields while the antipodean currencies are maintaining slight gains since early Asia trading.

Besides that, there wasn’t much for traders to work with. European stocks remained tepid after the stirring gains in recent weeks while US futures are little changed. In the bond market, yields are lower but not really dropping too hard on the day.

It is a week where things are starting to wind down in markets, so quiet days like this one will be more commonplace over the next two weeks. The BOJ is all there’s left on the agenda for this week, so we’ll wait and see if there is one last surprise before the Christmas holiday next week.



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