ForexLive European FX news wrap: Dollar remains steady, bond yields slip further

<p>Headlines:</p><ul><li><a href="https://www.forexlive.com/centralbank/ecbs-schnabel-further-rate-hikes-rather-unlikely-after-latest-inflation-data-20231205/">ECB's Schnabel: Further rate hikes "rather unlikely" after latest inflation data</a></li><li><a href="https://www.forexlive.com/news/traders-have-more-or-less-priced-in-a-rate-cut-by-the-ecb-for-march-next-year-now-20231205/">Traders have more or less priced in a rate cut by the ECB for March next year now</a></li><li><a href="https://www.forexlive.com/news/boe-rate-cut-pricing-starts-to-favour-june-next-year-as-first-move-20231205/">BOE rate cut pricing starts to favour June next year as first move</a></li><li><a href="https://www.forexlive.com/news/some-takeaways-from-the-euro-area-pmi-data-today-20231205/">Some takeaways from the euro area PMI data today</a></li><li><a href="https://www.forexlive.com/news/eurozone-october-ppi-02-vs-02-mm-expected-20231205/">Eurozone October PPI +0.2% vs +0.2% m/m expected</a></li><li><a href="https://www.forexlive.com/news/eurozone-november-final-services-pmi-487-vs-482-prelim-20231205/">Eurozone November final services PMI 48.7 vs 48.2 prelim</a></li><li><a href="https://www.forexlive.com/news/uk-november-final-services-pmi-509-vs-505-prelim-20231205/">UK November final services PMI 50.9 vs 50.5 prelim</a></li><li><a href="https://www.forexlive.com/news/ecb-survey-highlights-steadying-inflation-expectations-as-growth-prospects-remain-gloomy-20231205/">ECB survey highlights steadying inflation expectations as growth prospects remain gloomy</a></li></ul><p>Markets:</p><ul><li>JPY leads, AUD lags on the day</li><li>European equities mixed; S&amp;P 500 futures down 0.4%</li><li>US 10-year yields down 6 bps to 4.226%</li><li>Gold down 0.3% to $2,024.61</li><li>WTI crude flat at $73.07</li><li>Bitcoin down 0.6% to $41,7979</li></ul><p>It was a session mostly swayed by risk flows, as bond yields retreated while equities remain on the softer side after a stuttering start to the new week yesterday. European yields might have been somewhat affected after ECB hawk, Isabel Schnabel, pretty much confirmed a stop to rate hikes. However, it isn't anything that markets don't already know if you are to look at the ECB pricing to next year.</p><p>Instead, traders doubled down on her remarks as the first ECB rate cut for next year is now moving towards March after having been shifted to April from June just last week.</p><p>The euro remains subdued as a result, with the dollar keeping steadier across the board even amid lower Treasury yields. EUR/USD is down 0.2% to 1.0817 with the low earlier touching 1.0805 during the session.</p><p>Elsewhere, the dollar held its ground with USD/CAD seen up 0.3% to 1.3575 and AUD/USD down 0.9% to 0.6560 currently. The latter is rattled by the RBA keeping its cash rate unchanged, perhaps being done already in the tightening cycle.</p><p>A struggling risk mood is also not really helping commodity currencies on the day, as S&amp;P 500 futures are down 0.4%. That is keeping a lid on any optimism in Europe, with major indices trading more mixed at the moment.</p><p>In the commodities space, gold is looking more tepid as well after a sharp reversal in trading yesterday. The precious metal is down 0.2% to $2,024 levels as it is just floating along to the dollar mood.</p>

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