ForexLive European FX news wrap: Dollar slightly higher in final stretch of the week

Headlines:

• Dollar holds steadier so far on the session
• France February flash services PMI 44.5 vs 48.9 expected
• Germany February flash manufacturing PMI 46.1 vs 45.5 expected
• Eurozone February flash services PMI 50.7 vs 51.5 expected
• UK February flash services PMI 51.1 vs 50.8 expected
• UK January retail sales +1.7% vs +0.3% m/m expected
• France February business confidence 96 vs 95 prior
• Italy January final CPI +1.5% vs +1.5% y/y prelim
• Russia says no interim contact expected before Trump-Putin meeting
• China says vice premier He set to have video call with US Treasury secretary Bessent

Markets:

• USD leads, JPY lags on the day
• European equities higher; S&P 500 futures flat
• US 10-year yields down 1.5 bps to 4.483%
• Gold down 0.2% to $2,932.89
• WTI crude down 0.8% to $71.94
• Bitcoin up 0.7% to $98,790

As we look towards the end of the week, the dollar is recovering some ground with the help of other forces in play today.

USD/JPY is the lead gainer, up 0.5% to above 150.00 again after BOJ governor Ueda warned against “abnormal” moves in the Japanese bond market. That saw 10-year JGB yields fall and USD/JPY got a kick up from it, rising in Asia to hold above the figure level around 150.30-50 in European trading.

During the session, we got a very weak French PMI reading and that dragged the euro slightly lower with EUR/USD pushed down from around 1.0480 to 1.0460 levels. So far, the pair is still struggling to find a way past the 1.0500 mark on a firmer basis for the last few weeks.

A stronger UK retail sales report did briefly keep sterling afloat, with GBP/USD seen around 1.2670 early on before easing to around 1.2640 as the dollar is holding its own. As for commodity currencies, they are lightly changed with USD/CAD up just 0.1% to 1.4190 levels ahead of the Canada retail sales data later and AUD/USD is down just a touch to 0.6385.

In terms of risk sentiment, it wasn’t so much of a factor. S&P 500 futures are flattish with tech shares up but value shares are down. Nasdaq futures are up 0.3% but Dow futures are down 0.3%, so that’s the state of play ahead of the open later.

European stocks though are hoping to try and salvage their winning streak, keeping a little higher on the day. The DAX still needs to do more to claw back weekly losses, so all eyes will be on the mood in Wall Street to determine that.

As we look to wrap up the week, US PMI data will be in focus alongside more headlines from Trump himself surely. So, do be on the lookout for that before the weekend comes along. Have a good one, folks!

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