ForexLive European FX news wrap: Dollar retreats alongside bond yields

Headlines:

• USD/JPY eases lower alongside bond yields on the day
• Gold takes aim at key resistance as the weekend approaches
• What are the main events for today?
• Fed’s Goolsbee: You don’t want to tighten any longer than you have to
• UK July retail sales +0.5% vs +0.5% m/m expected
• Eurozone June trade balance €22.3 billion vs €13.9 billion prior
• Never underestimate the power of US the consumer

Markets:

• JPY leads, USD and CAD lag on the day
• European equities higher; S&P 500 futures down 0.2%
• US 10-year yields down 5.9 bps to 3.867%
• Gold up 0.6% to $2,469.79
• WTI crude down 2.9% to $75.86
• Bitcoin up 2.9% to $58,287

There wasn’t any major headline catalysts on the session but the dollar is giving back quite a decent chunk of its gains following the US retail sales data yesterday.

USD/JPY in particular is down over 120 pips to near the 148.00 mark, with lower bond yields weighing. 10-year Treasury yields are down nearly 6 bps to 3.867% and that is keeping the yen more bid during the session.

In the last three days, traders could look to US data for some sense of reprieve on the economic calendar. But today, they have to look to themselves to pull things back up now. S&P 500 futures were up 0.2% early on but are now down 0.2% as we look to North America trading.

Going back to major currencies, EUR/USD is up 0.2% to just under 1.1000 with large option expiries keeping a lid on things there. GBP/USD is up 0.4% to 1.2905 while USD/CHF is down 0.6% to 0.8675 currently.

The dollar is struggling alongside the loonie, which is perhaps weighed down by weaker oil prices on the day. WTI crude is down nearly 3% as the rejection from $80 continues to stay the course this week.

In other commodities, gold is once again closing in on the key resistance region of $2,475-80 as buyers are teasing a breakout before the weekend comes.

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