ForexLive European FX news wrap: Euro does the rise and fall on PMI beats, pound gains

Headlines:

• Euro gives it all back as PMI pop fades
• Japan huffs and puffs but it isn’t taking USD/JPY down
• Gold stays in retreat mode, down 1% on the day
• France April flash services PMI 50.5 vs 48.9 expected
• Germany April flash manufacturing PMI 42.2 vs 42.8 expected
• Eurozone April flash services PMI 52.9 vs 51.8 expected
• UK April flash services PMI 54.9 vs 53.0 expected
• ECB’s de Guindos: Barring any surprises, June rate cut is a ‘fait accompli’
• BOE’s Pill: The timing for a rate cut is still some way off
• BOE’s Pill says seeing signs of a downward shift in inflation persistency
• BOE’s Haskel: High inflation to remain unless labour market weakens

Markets:

• GBP leads, NZD lags on the day
• European equities higher; S&P 500 futures up 0.2%
• US 10-year yields up 2.9 bps to 4.651%
• Gold down 1.0% to $2,302.06
• WTI crude down 0.7% to $80.65
• Bitcoin down 0.7% to $66,088

A couple of PMI beats got things moving in Europe, with the euro nudging higher amid better readings from France and Germany. It was a tale of two PMIs, as services were a beat while manufacturing remains rather languid. Still, EUR/USD popped higher from 1.0665 to 1.0695 but gave it all back afterwards.

The dollar was largely steady during the session but is now easing just a touch against the euro and pound mostly. EUR/USD is up 0.15% to 1.0670 while GBP/USD is up 0.38% to 1.2396, with the latter helped out by some comments from BOE policymaker Huw Pill.

Besides that, other major currencies didn’t do much with eyes also still on USD/JPY as it holds near the 155.00 mark.

In other markets, bond yields are higher after the PMI data from earlier while equities are hoping to keep the bounce from yesterday going. There are still some nerves though, with US futures only up around 0.2% on the day. But European indices are unabashed, with the UK FTSE 100 even touching a record high earlier.

In the commodities space, gold is still being pushed down after yesterday’s fall as it slips by 1% to $2,300.

It’s now over to the US PMI data later next.

This article was written by Justin Low at www.forexlive.com.