Headlines:
Markets:
- NZD leads, USD lags on the day
- European equities higher; S&P 500 futures up 0.2%
- US 10-year yields up 1.4 bps to 3.938%
- Gold up 0.5% to $1,837.22
- WTI crude down 0.8% to $76.54
- Bitcoin up 2.5% to $23,745
The Dollar was already on the backfoot in the handover from Asia but continued to slump in European morning trade, as equities gained some optimism after a steady start to the day. The greenback was lagging after the more buoyant China PMI data, which bolstered the yuan and also its proxies i.e. the aussie and kiwi.
AUD/USD in particular saw a strong rebound from the lows in Asia, after softer Australian data, coming up from 0.6700 to a high of 0.6780. Meanwhile, NZD/USD gradually advanced to post roughly 1.4% gains now at 0.6270.
European stocks opened mostly little changed but gains were quick to follow, as equities are kick starting March trading with much buzz.
The dollar is seen weaker across the board with EUR/USD also moving up from 1.0600 to 1.0680 on the session and USD/JPY down from 136.40 to 135.30 currently. The latter move is coming despite higher bond yields and that says a lot about the dollar's softness today.
The pound was the other notable mover on the session, with GBP/USD rising up from 1.2040 to 1.2088 only to fall to 1.2013 after BOE governor Bailey's remarks. The pair is seeing a bit of a rebound again as the dollar weakens but the pound is among the laggards today against the rest of the major currencies.
We will have German inflation up next but looking at how markets have brushed aside the state readings earlier, it looks like the focus will stay on dollar and risk sentiment today.
This article was written by Justin Low at www.forexlive.com.from Forexlive RSS Breaking News Feed https://ift.tt/euOYfyN
