ForexLive European FX news wrap: Currencies muted, Wall Street eyes fresh record highs

Headlines:

• Major currencies not up to much to start the session
• China says London talks served to further confirm details on framework
• China reportedly seeks to tie French cognac deal with EV tariff talks
• ECB’s Knot: The ECB may well need to keep rates on hold for some time
• ECB’s de Guindos says on track to meet 2% inflation target
• PBoC: Will enhance monetary policy adjustment strength
• US Core PCE is expected at 2.6% Y/Y but it won’t change anything for the Fed
• Eurozone June final consumer confidence -15.3 vs -15.3 prelim
• France June preliminary CPI +0.9% vs +0.7% y/y expected
• Spain June preliminary CPI +2.2% vs +2.0% y/y expected
• Italy June consumer confidence 96.1 vs 97.0 expected

Markets:

• EUR leads, JPY lags on the day
• European equities higher; S&P 500 futures up 0.4%
• US 10-year yields up 2.2 bps to 4.275%
• Gold down 1.3% to $3,283.68
• WTI crude up 0.4% to $65.48
• Bitcoin down 0.8% to $106,998

It was another quiet session with little in terms of any major movements in the FX space. The dollar is keeping steadier on the day, with light changes all around but in the bigger picture remains in a more vulnerable spot following the losses yesterday.

It’s a build up now towards the US PCE price index release and month-end trading.

EUR/USD kept steady just above 1.1700 with USD/JPY also just a touch higher around 144.40-60 levels for the most part. Meanwhile, USD/CHF is testing waters under 0.6800 while AUD/USD is still trying to secure a breakout above daily resistance around 0.6537-50.

This comes amid a more positive backdrop in equities as investors look towards fresh record highs in Wall Street later in the day. European indices opened higher and held that momentum, hoping to trim down some of the losses for the month. US futures remain buoyed, with S&P 500 futures now up 0.4% close to the highs.

In other markets, gold is knocked down in a push below $3,300 and is now down on the month as precious metals slide back today.

The market focus is back on trade developments and the economy/central banks, though month-end flows will distract from that a little today and on Monday. All that before a fresh start in July as we move on from the last two weeks of geopolitical tensions.

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