ForexLive European FX news wrap: Dollar eases as equities recover ahead of US PCE data

<p>Headlines:</p><ul><li><a href="https://www.forexlive.com/news/us-futures-trim-losses-on-the-session-eyes-us-pce-price-report-20240126/">US futures trim losses on the session, eyes US PCE price report</a></li><li><a href="https://www.forexlive.com/centralbank/ecbs-vuji-there-was-no-dovish-tilt-on-thursday-20240126/">ECB's Vujčić: There was no dovish tilt on Thursday</a></li><li><a href="https://www.forexlive.com/centralbank/ecbs-imkus-i-am-confident-that-the-data-will-not-support-a-rate-cut-in-march-20240126/">ECB's Šimkus: I am confident that the data will not support a rate cut in March</a></li><li><a href="https://www.forexlive.com/centralbank/ecbs-kazks-says-confident-about-monetary-policy-but-preaches-patience-for-now-20240126/">ECB's Kazāks says confident about monetary policy but preaches patience for now</a></li><li><a href="https://www.forexlive.com/news/lower-inflation-and-softer-growth-seen-for-this-year-and-next-ecb-survey-20240126/">Lower inflation and softer growth seen for this year and next – ECB survey</a></li><li><a href="https://www.forexlive.com/news/germany-february-gfk-consumer-sentiment-297-vs-245-expected-20240126/">Germany February GfK consumer sentiment -29.7 vs -24.5 expected</a></li><li><a href="https://www.forexlive.com/news/france-january-consumer-confidence-91-vs-90-expected-20240126/">France January consumer confidence 91 vs 90 expected</a></li><li><a href="https://www.forexlive.com/news/eurozone-december-m3-money-supply-01-vs-09-yy-prior-20240126/">Eurozone December M3 money supply +0.1% vs -0.9% y/y prior</a></li><li><a href="https://www.forexlive.com/news/german-economy-will-stagnate-at-best-in-the-current-quarter-bundesbank-20240126/">German economy will stagnate at best in the current quarter – Bundesbank</a></li><li><a href="https://www.forexlive.com/news/japans-largest-trade-union-chief-reaffirms-desire-for-wages-and-prices-to-grow-further-20240126/">Japan's largest trade union chief reaffirms desire for wages and prices to grow further</a></li><li><a href="https://www.forexlive.com/news/opec-reportedly-likely-to-wait-several-weeks-before-deciding-on-oil-output-policy-20240126/">OPEC+ reportedly likely to wait several weeks before deciding on oil output policy</a></li></ul><p>Markets:</p><ul><li>CHF leads, NZD lags on the day</li><li>European equities higher; S&amp;P 500 futures flat</li><li>US 10-year yields down 0.8 bps to 4.124%</li><li>Gold up 0.1% to $2,020.66</li><li>WTI crude down 1.0% to $76.60</li><li>Bitcoin up 3.8% to $41,408</li></ul><p>There wasn't much to work with on the session but the dollar took a slight knock as equities recovered early losses in European trading.</p><p>US futures were more subdued early on, with tech shares leading the downside, after Intel reported softer Q1 guidance in its earnings call. S&amp;P 500 futures were down as much as 0.5% but has pared all of that now while Nasdaq futures are down just 0.2% after having been down roughly 0.8% earlier in the day.</p><p>In Europe, French stocks are leading the way with luxury stocks gaining after LVMH topped revenue estimates in Q4 last year. A mixed start has now translated to stronger gains for regional indices amid a rebound in US futures as well.</p><p>In FX, the dollar was steadier early on but is now slightly on the softer side as we await the US PCE price report. USD/JPY remains steady around 147.75 but EUR/USD moved up from 1.0815 to 1.0870 and is holding at the highs for the day currently. GBP/USD also recovered from around 1.2680 to 1.2730 while USD/CHF dropped from 0.8680 to 0.8620 on the session.</p><p>Besides some light flows and a recovery in equities sentiment, there wasn't much else going on. The bond market is a bit of a dud today, so that's not helping.</p><p>All eyes now turn towards the US PCE price report to see what that has to offer to the inflation picture next.</p>

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