ForexLive European FX news wrap: Dollar run pauses, UK inflation slows less than expected

Headlines:

• Sterling climbs on slightly stronger UK inflation data
• US futures pare losses as risk mood holds up for now
• Japan chief Cabinet secretary says closely watching FX moves, prepared for full measures
• UK March CPI +3.2% vs +3.1% y/y expected
• Eurozone March final CPI +2.4% vs +2.4% y/y prelim
• US MBA mortgage applications w.e. 12 April +3.3% vs +0.1% prior
• NZ statistics office owns up to inflation data release error
• Japan monthly visitors hit a record high in March, crosses 3 million for first time ever

Markets:

• NZD leads, USD lags on the day
• European equities higher; S&P 500 futures up 0.3%
• US 10-year yields flat at 4.655%
• Gold up 0.3% to $2,388.80
• WTI crude down 0.7% to $84.77
• Bitcoin flat at $63,053

The dollar is taking a bit of a breather today as it slacks against the rest of the major currencies bloc. That said, it is still in a solid position as traders are still digesting the events so far in April.

The pound was a decent mover, helped by a slightly stronger UK inflation report. GBP/USD nudged up from 1.2420 to 1.2480 but failed to clear the 100-hour moving average. The key technical hurdle is where sellers are holding, with price now back down slightly to 1.2455 on the day.

Besides that, EUR/USD is up 0.2% to 1.0640 with USD/CHF down 0.2% to 0.9107 currently. The moves are relatively light, not really suggesting much of a turnaround in the recent dollar momentum.

AUD/USD is seen up 0.4% to 0.6425 with NZD/USD up 0.5% to 0.5908 after the NZ inflation data earlier in the day. A better risk mood is also helping as US futures pared early losses to sit a little higher now. European indices are also looking to bounce back from yesterday’s fall, with French stocks leading the way. The CAC 40 is up a little over 1% with the DAX up 0.5%.

Other than that, there’s not much else to really scrutinise in markets so far today. It’s a pause in the dollar momentum and that’s the main takeaway.

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