ForexLive European FX news wrap: Markets tentative awaiting US CPI, Fed showdown

Headlines:

• A big day coming up for markets
• What are the main events for today?
• France’s Macron calls for democratic parties to unite to form a governing pact
• France’s Macron: I do not want to hand the keys of power to the far-right in 2027
• UK April monthly GDP 0.0% vs 0.0% m/m expected
• Germany May final CPI +2.4% vs +2.4% y/y prelim
• US MBA mortgage applications w.e. 7 June +15.6% vs -5.2% prior
• The “crypto president” says he wants all remaining Bitcoin “to be made in the US”

Markets:

• CHF leads, JPY lags on the day
• European equities higher; S&P 500 futures up 0.1%
• US 10-year yields flat at 4.398%
• Gold down 0.1% to $2,312.79
• WTI crude up 1.1% to $78.77
• Bitcoin up 0.8% to $67,800

It was a quiet and more tentative session as markets are waiting on the main events later today.

It will be the first time since June 2020 that the US CPI report and FOMC meeting both falling on the same day, setting up for a blockbuster session in US trading ahead.

That is keeping markets on edge, with major currencies little changed overall. French president Macron came out to say that he will fight on and that is nudging the euro a little higher. EUR/USD is up 0.2% to 1.0760, with the dollar keeping mixed on the day so far.

USD/JPY is seen up 0.2% to 157.35 while GBP/USD is up 0.1% to 1.2755 currently, not doing a whole lot overall.

In the equities space, European indices are seeing a slight bounce back after the political angst weighed on sentiment in the last two days. US futures aren’t doing much though, waiting on the inflation numbers and the Fed later before acting.

It’s been a bit of a wait this week but we’re finally here now. Time to get the party started!

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