ForexLive European FX news wrap: Dollar steady as risk sentiment stays on edge

Headlines:

• Dip buyers will have but one more shot before the weekend
• Japan's largest union group Rengo sees average wage hike of 5.40% in second-round data
• White House reportedly begins review on plans for second round of mass layoffs
• PBOC says will cut RRR and interest rates at appropriate time
• France March business confidence 97 vs 96 prior
• Eurozone January current account balance €13.2 billion vs €50.5 billion prior
• UK March CBI trends total orders -29 vs -28 prior
• Germany's upper house of parliament passes debt reform
• UK stats office to pause publication of producer price index

Markets:

• CHF leads, AUD lags on the day
• European equities lower; S&P 500 futures down 0.2%
• US 10-year yields down 2.1 bps to 4.211%
• Gold down 0.3% to $3,034.26
• WTI crude down 0.4% to $67.80
• Bitcoin down 0.6% to $84,039

It was a quiet session in Europe as market players are gearing up for perhaps a more volatile end to the week when we get to US trading later. Equities remain more guarded, with US futures slipping during the session as a sense of nervousness continues to permeate.

That helped to keep the dollar a little more bid early one before the greenback is now keeping little changed as yields also ease lower during the session.

EUR/USD fell from 1.0840 to 1.0820 before recovering losses to near flat levels on the day now. USD/JPY also raced up to a high of 149.65 before slipping back to 148.95 currently amid the retreat in Treasury yields. 10-year yields in the US are down to 4.21%, continuing to hold around its 100-week moving average of 4.206%.

Besides that, GBP/USD also fell from 1.2950 to 1.2923 before holding around 1.2940 levels now. And USD/CAD is just seen marginally higher by 0.1% to 1.4335 ahead of the Canadian retail sales data later.

All in all, the movement among dollar pairs is still relatively contained besides USD/JPY that is.

But with the risk tone keeping more cautious, it sets up for a bit of a nervy end to the week. That especially if we do get another selloff in risk trades later in the day.

In other markets, gold is also down slightly to $3,034 with the earlier low touching $3,022 during the session. Meanwhile, oil is also giving back some of its advance from yesterday as it is down to $67.80. But it is at least still poised to end the week slightly higher, still holding on to support from the 2024 lows for now.