ForexLive European FX news wrap: Dollar eases in light trading

<p>Headlines:</p><ul><li><a href="https://www.forexlive.com/news/usdjpy-droops-back-towards-key-technical-level-lower-yields-also-weighing-20231221/">USD/JPY droops back towards key technical level, lower yields also weighing</a></li><li><a href="https://www.forexlive.com/centralbank/ecbs-de-guindos-it-is-too-early-to-ease-monetary-policy-20231221/">ECB's de Guindos: It is too early to ease monetary policy</a></li><li><a href="https://www.forexlive.com/news/france-december-business-confidence-98-vs-97-prior-20231221/">France December business confidence 98 vs 97 prior</a></li><li><a href="https://www.forexlive.com/news/uk-december-cbi-retailing-reported-sales-32-vs-11-prior-20231221/">UK December CBI retailing reported sales -32 vs -11 prior</a></li><li><a href="https://www.forexlive.com/news/large-chinese-banks-reportedly-to-cut-deposit-rates-on-friday-20231221/">Large Chinese banks reportedly to cut deposit rates on Friday</a></li><li><a href="https://www.forexlive.com/news/dollar-dominance-in-global-setting-still-not-going-away-any-time-soon-20231221/">Dollar dominance in global setting still not going away any time soon</a></li></ul><p>Markets:</p><ul><li>JPY leads, USD lags on the day</li><li>European equities lower; S&amp;P 500 futures up 0.5%</li><li>US 10-year yields down 0.6 bps to 3.871%</li><li>Gold up 0.3% to $2,035.72</li><li>WTI crude down 0.3% to $74.02</li><li>Bitcoin up 1.6% to $44,172</li></ul><p>It was a quiet session as trading conditions continue to wind down as we approach the Christmas holidays next week. The dollar did slump however, after having been little changed mostly in Asia trading earlier in the day. USD/JPY was pressured around 142.90 before extending a drop to 142.65 in European morning trade.</p><p>Meanwhile, EUR/USD gained from 1.0950 to 1.0980 while AUD/USD advanced from 0.6740 to 0.6760 during the session. There weren't any major headlines driving the moves as overall market sentiment remains more mixed.</p><p>European indices are lower in catching up to the fall in Wall Street yesterday, even with US futures sitting slightly higher today. US major indices saw their biggest loss in three months yesterday, so even with S&amp;P 500 futures up 0.5% today, it's not helping out the risk mood all too much.</p><p>In the bond market, Treasury yields are little changed after having kept lower earlier on but 10-year yields are still keeping at the recent lows at around 3.87% currently.</p>

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