ForexLive European FX news wrap: Japanese yen settles down after big swings

Read full post at forexlive.com

Headlines:

Markets:

• GBP
  leads,
  JPY
  lags
  on
  the
  day
• European
  equities
  higher;
  S&P
  500
  futures
  flat
• US
  10-year
  yields
  up
  2.5
  bps
  to
  4.218%
• Gold
  down
  0.6%
  to
  $2,400.77
• WTI
  crude
  up
  0.9%
  to
  $83.35
• Bitcoin
  down
  0.5%
  to
  $57,250

It
was
a
much
calmer
session
following
the
big
swings
after
the
US
CPI
report
yesterday
and
in
part
in
Asia
trading
today
as
well.

The
Japanese
yen
stole
the
spotlight
after
Tokyo
decided
to
intervene
yesterday,
in
what
was

a
rather
unorthodox
move
on
their
part.
USD/JPY
continued
to
swing
in
Asia
trading
but
ultimately
settled
down
when
we
got
to
European
morning
trade.
The
pair
hugged
levels
around
159.00-30
for
the
most
part,
even
as
BOJ
data
suggested
that
Japan
did
step
into
the
market.

Besides
that,
the
dollar
was
a
touch
softer
across
the
board.
EUR/USD
is
up
0.2%
to
1.0890
and
GBP/USD
up
0.4%
to
1.2960
in
a
light
extension
to
the
post-CPI
moves.

As
for
the
broader
market
mood,
it
was
more
tentative
to
some
degree.
S&P
500
futures
remain
flattish
as
we
get
into
earnings
season.
JP
Morgan
topped
Q2
revenue
estimates
while
Wells
Fargo
reported
a
miss
amid
a
decline
in
net
interest
income.
In
Europe,
stocks
remain
modestly
optimistic
in
keeping
the
rebound
over
the
last
two
days.

Elsewhere,
bond
yields
are
up
slightly
after
the
overnight
fall
with
10-year
yields
in
the
US
still
holding
at
the
June
low
of
4.19%.
As
for
commodities,
gold
and
silver
are
both
pulling
back
wit
the
former
dragged
back
towards
$2,400
while
the
latter
is
down
over
2%
to
$30.69
on
the
day.