ForexLive European FX news wrap: Dollar sluggish on better risk mood; PMI up next

Headlines:

• Nvidia earnings boost the S&P 500. What’s next?
• Eurozone Q1 wages come in hotter than the previous quarter
• Eurozone May flash services PMI 53.3 vs 53.5 expected
• Germany May flash services PMI 53.9 vs. 53.5 expected
• France May flash services PMI 49.4 vs 51.7 expected
• UK May flash services PMI 52.9 vs 54.7 expected
• HSBC, Deutsche now expects BOE to only start cutting rates in August
• Morgan Stanley the next to revise BOE rate cut call to August from June previously
• Commodities brace for a stronger pullback after the rough showing yesterday

Markets:

• NZD leads, USD lags on the day
• European equities higher; S&P 500 futures up 0.6%
• US 10-year yields down 1.2 bps to 4.421%
• Gold down 0.4% to $2,368.01
• WTI crude up 0.8% to $78.20
• Bitcoin up 0.5% to $69,730

The dollar is lagging in trading today as the overall risk mood is propped up by Nvidia’s earnings beat after the close yesterday. US futures are pointing higher with tech shares leading the way. And that is helping to boost risk assets as well.

During the session, we also got euro area and UK PMI data. The former was a mixed bag but the sluggish French readings were offset by slightly better readings in Germany. EUR/USD fell initially to 1.0813 before finding a bounce off its 100-day moving average as well to 1.0840 levels now.

Meanwhile, the UK figures were less than ideal but GBP/USD is still seen up 0.1% to 1.2727 after a brief drop to test its 100-hour moving average at 1.2708.

Overall, the dollar is looking sluggish as the push and pull this week continues to play out. AUD/USD is up 0.2% to 0.6633 while NZD/USD is up 0.4% to 0.6121, buoyed by the better risk sentiment.

In other markets, commodities are continuing to struggle after yesterday’s rough showing. Gold is down 0.5% to $2,367 with the low earlier touching $2,355. Meanwhile, copper futures fell to a low of $4.74 earlier but is now back to $4.81 after a 6% drop yesterday – its worst showing since the pandemic.

Let’s see what the US PMI data later has to offer next.

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