ForexLive European FX news wrap: Currencies muted, equities look for perfect week

Headlines:

• Equities keep up the optimism towards the end of the week
• Japan PM Kishida says closely monitoring recent yen weakness
• Next rate hike could come as early as July, says former BOJ executive
• Fed is still on track to cut rates this year but timing is uncertain – Bostic
• ECB accounts: Plausible to be in a position to start easing policy at June meeting
• BOE’s Pill: The persistent parts of inflation are falling
• UK Q1 preliminary GDP +0.6% vs +0.4% q/q expected
• UK March monthly GDP +0.4% vs +0.1% m/m expected

Markets:

• GBP leads, NZD lags on the day
• European equities higher; S&P 500 futures up 0.3%
• US 10-year yields up 2.4 bps to 4.472%
• Gold up 1.1% to $2,373.20
• WTI crude up 0.6% to $79.76
• Bitcoin up 1.1% to $63,333

It was a relatively quiet session with major currencies not really up to much in European morning trade.

The dollar held steadier throughout, keeping with just a light advance against the aussie and kiwi. But besides that, other major currencies were more muted. That includes sterling, even after a modest beat on its Q1 GDP figures. GBP/USD held rangebound around 1.2520-30 levels throughout the session.

Meanwhile, USD/JPY steadily nudged higher to 155.70 levels but is not really getting too carried away to run up to 156.00 just yet. The rest of the major currencies bloc lacked appetite for the most part.

The action in other markets were more interesting as equities are keeping the optimism towards the end of the week. European indices are scaling to fresh record highs again in a hot start to May while US futures are also holding higher on the day. For stocks, another round of gains will make it a perfect week of trading.

Elsewhere, gold is racing higher by over 1% as it looks to end the week with a flourish. Buyers are contesting a trendline resistance at around $2,372.50 but will look to the $2,400 mark in the bigger picture.

Have a great weekend, everyone.

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