ForexLive European FX news wrap: Dollar pensive after Friday retreat

Headlines:

• Dollar on edge as we look to the new week
• What changed after the US NFP report?
• Central banks are still on the agenda this week
• ECB’s Vujčić says rates will be gradually lowered over time
• ECB’s Šimkus: Last week’s data were as expected
• Eurozone May Sentix investor confidence -3.6 vs -4.9 expected
• Eurozone April Final Services PMI 53.3 vs. 52.9 expected
• Eurozone March PPI -0.4% vs -0.4% m/m expected
• SNB total sight deposits w.e. 3 May CHF 473.2 bn vs CHF 475.7 bn prior
• Russia says it is to hold tactical nuclear weapons drill

Markets:

• AUD leads, JPY lags on the day
• European equities higher; S&P 500 futures up 0.3%
• US 10-year yields down 1.9 bps to 4.481%
• Gold up 0.8% to $2,319.44
• WTI crude up 1.0% to $78.87
• Bitcoin up 1.8% to $64,067

It was a slower session with London out on holiday and that saw light changes among major currencies.

The dollar is marginally softer at the balance, keeping more mixed amid a jump in USD/JPY during Asia trading. The pair moved up to near 154.00 earlier and has been holding around 153.70-80 levels mostly during the session.

Besides that, the dollar is mildly softer against the likes of the euro, pound and loonie. EUR/USD is sitting within a 20 pips range around 1.0770 while GBP/USD is up 0.2% to 1.2575 as buyers look to take the next step higher. AUD/USD is up 0.3% to 0.6628 amid a better risk mood on the day so far.

Equities are seen keeping up the gains from last week, with S&P 500 futures up nearly 0.4% while European indices are also posting modest gains today.

The minor drag in the dollar comes as yields stay on the backfoot with 10-year Treasury yields just under 4.50%. The retreat in yields is continuing after the softer data on Friday, prompting traders to step up Fed rate cut bets.

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