ForexLive European FX news wrap: Dollar bounces back a little more post-Fed

Headlines:

• Dollar keeps steadier so far on the day, awaits more US data
• What now after the US CPI and Fed showdown yesterday?
• What has changed after the US CPI and FOMC?
• ECB’s Muller: It is too early to say when the next rate cut can happen
• ECB’s Vasle: Possible for more rate cuts if baseline scenario holds
• Spain May final CPI +3.6% vs +3.6% y/y prelim
• Germany May wholesale price index +0.1% vs +0.4% m/m prior
• Eurozone April industrial production -0.1% vs +0.2% m/m expected

Markets:

• USD leads, AUD lags on the day
• European equities lower; S&P 500 futures up 0.1%
• US 10-year yields up 2.3 bps to 4.318%
• Gold down 0.7% to $2,306.83
• WTI crude down 0.9% to $77.81
• Bitcoin down 0.5% to $67,740

The dollar is standing its ground on the day, keeping firmer after the Fed helped to stem the tide in trading yesterday.

The greenback was steadier early on before nudging a little higher now as we look to US trading. EUR/USD was hugging around 1.0800 before falling now to 1.0785. Meanwhile, GBP/USD stuck around 1.2790 before easing to 1.2765 currently.

USD/JPY was little changed, having already pushed up in Asia trading – holding around 157.10-20 levels, up 0.3% on the day.

Elsewhere, AUD/USD is down 0.3% to 0.6640 with USD/CAD up 0.2% to 1.3750 on the day now.

In the equities space, tech shares are still largely higher but the overall mood is mixed. Nasdaq futures may be up 0.6% but Dow futures are down 0.3%. For European indices, there is some catching up to do to the late retreat after the Fed yesterday too. Major indices in the region are down closer to 1% across the board.

Looking over to commodities, precious metals are feeling the pinch again as such. Gold is down 0.7% and eyeing the $2,300 mark while silver is down nearly 2% to $29.10 at the moment. I’d still like to see a stronger correction, especially in gold, before further dip buying in this space.

All in all, this has the makings of a turnaround Thursday for the most part. But we’ll have to see if US data later will help to spur that on or not.

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