ForexLive European FX news wrap: Dollar mixed, equities sentiment hopeful

Headlines:

Markets:

• CAD leads, JPY lags on the day
• European equities higher; S&P 500 futures up 0.5%
• US 10-year yields up 4.9 bps to 4.298%
• Gold up 0.3% to $1,893.79
• WTI crude up 1.3% to $82.30
• Bitcoin flat at $26,081

It was a relatively quiet session as markets get settled into the new week. The dollar is trading a bit more mixed but marginally lower at the balance as equities push higher during the session.

There was not much appetite in the handover from Asia, even if traders were somewhat disappointed by China’s lack of rate cuts earlier today. That is resulting in market participants cutting their growth outlook for China even further, as confidence continues to stutter.

Bond yields continued to push higher but stocks were not fazed, at least for now. US futures were flattish but are now higher by 0.5% and that is helping to see slight gains in risk as well. The dollar is losing a bit of ground with EUR/USD up 0.3% to 1.0900, with large option expiries in play. USD/CAD is also down 0.3% to 1.3500 as oil prices move higher.

Besides that, higher yields continue to underpin USD/JPY with the pair up 0.4% to 145.90. So, there are some mixed tones in the market but at the end of the day, something’s gotta give I feel. And more often than not, the bond market tends to have its way. So, just be wary of that.