Headlines:
- Dollar gains stall for now but the technicals look good
- Dollar back in the driver's seat
- How has the Fed pricing changed in the past week?
- ECB's Lagarde: We are heading towards more delicate decisions going forward
- ECB reportedly to step up scrutiny of bank liquidity, may raise requirements
- BOJ's Ueda: Appropriate to take time in determining when to modify easy policy
- BOJ's Ueda: Japan inflation likely to slow back below 2% in middle of current fiscal year
- China state banks reportedly seen swapping yuan for dollars in onshore forwards market
- Germany April PPI +0.3% vs -0.5% m/m expected
Markets:
- NZD leads, USD lags on the day
- European equities higher; S&P 500 futures up 0.3%
- US 10-year yields up 0.7 bps to 3.655%
- Gold up 0.3% to $1,963.53
- WTI crude up 1.0% to $72.60
- Bitcoin up 0.5% to $26,843
There weren't many major headlines during the session as European trading featured a quieter and calmer mood. The dollar saw its gains from yesterday cut back a little, but remains in a favourable spot overall. That comes as European indices rush higher again with the DAX hovering at fresh record highs currently.
The positive momentum in the equities space is continuing after the tech-heavy gains in Wall Street and US futures are also holding higher again today.
That is at least helping with a light pullback in the dollar with EUR/USD moving back to 1.0800 but still keeping just below its 100-day moving average at 1.0806. Meanwhile, USD/JPY did move lower to touch 138.00 but is now seen at around 138.40, still 0.2% down on the day, as bond yields recover from an early retreat.
Amid the more optimistic mood, the antipodeans are notable gainers with AUD/USD keeping a bounce from 0.6600 yesterday to stick around 0.6650 levels. NZD/USD is also seen up 0.8% to 0.6275, trying to nudge above its own 100-day moving average.
Elsewhere, gold is also seeing a minor bounce to $1,963 but it still doesn't take away from the break of support at $1,975-81 from yesterday.
All eyes now move to Fed chair Powell's speech to wrap up the week, so we'll have to see if there is any angle for traders to work with or if we will see a continuation of the technical play in the dollar.
