ForexLive European FX news wrap: Dollar steadies alongside yields, stocks hold lower

<p>Headlines:</p><ul><li><a href="https://www.forexlive.com/news/major-currencies-keep-quieter-so-far-in-european-trading-20240109/">Major currencies keep quieter so far in European trading</a></li><li><a href="https://www.forexlive.com/news/impact-of-monetary-policy-shocks-is-greater-on-manufacturing-than-services-ecb-study-20240109/">Impact of monetary policy shocks is greater on manufacturing than services – ECB study</a></li><li><a href="https://www.forexlive.com/news/eurozone-november-unemployment-rate-64-vs-65-expected-20240109/">Eurozone November unemployment rate 6.4% vs 6.5% expected</a></li><li><a href="https://www.forexlive.com/news/germany-november-industrial-production-07-vs-02-mm-expected-20240109/">Germany November industrial production -0.7% vs +0.2% m/m expected</a></li><li><a href="https://www.forexlive.com/news/france-november-trade-balance-59-billion-vs-86-billion-prior-20240109/">France November trade balance -€5.9 billion vs -€8.6 billion prior</a></li><li><a href="https://www.forexlive.com/news/switzerland-december-seasonally-adjusted-unemployment-rate-22-vs-22-expected-20240109/">Switzerland December seasonally adjusted unemployment rate 2.2% vs 2.2% expected</a></li><li><a href="https://www.forexlive.com/news/us-december-nfib-small-business-optimism-index-919-vs-906-prior-20240109/">US December NFIB small business optimism index 91.9 vs 90.6 prior</a></li><li><a href="https://www.forexlive.com/news/magnitude-60-earthquake-reported-in-western-japan-region-20240109/">Magnitude 6.0 earthquake reported in Western Japan region</a></li></ul><p>Markets:</p><ul><li>JPY leads, AUD lags on the day</li><li>European equities lower; S&amp;P 500 futures down 0.4%</li><li>US 10-year yields up 4 bps to 4.042%</li><li>Gold up 0.3% to $2,035.12</li><li>WTI crude up 2.4% to $72.48</li><li>Bitcoin down 0.9% to $46,693</li></ul><p>It was a quieter session in Europe today, bereft of any major headlines. The risk-on action yesterday saw no follow through though, as markets adopted a more cautious approach instead. Bond yields rebounded on the day with 10-year yields in the US holding above 4%, pinning down risk appetite.</p><p>Equities were more tepid early on but gradually moved lower with US futures now down some 0.4% on the day. European indices are also posting losses of around 0.3% to 0.4% on the session currently.</p><p>Overall, that is keeping the dollar steadier across the board. EUR/USD and GBP/USD are down just slightly to 1.0933 and 1.2720 respectively. USD/JPY is also down though by 0.2% to 144.00 but has recovered since Asia trading from around 143.70 earlier on.</p><p>Meanwhile, USD/CAD is also seen up 0.2% to 1.3370 and AUD/USD is marked down by 0.3% to 0.6695 on the day. All the pairs are still holding within ranges from what we saw in trading yesterday, so it isn't really saying much.</p><p>We'll see what the US session brings but as a reminder, it's still a tale of two halves this week with the US CPI data to come on Thursday.</p>

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