ForexLive European FX news wrap: Dollar steady, Italy inflation eases

<p>Headlines:</p><ul><li><a href="https://www.forexlive.com/news/aussie-thrown-a-bit-of-a-curveball-via-inflation-data-today-20230628/">Aussie thrown a bit of a curveball via inflation data today</a></li><li><a href="https://www.forexlive.com/news/japan-finance-minister-says-exchange-rate-should-move-stably-20230628/">Japan finance minister says exchange rate should move stably</a></li><li><a href="https://www.forexlive.com/centralbank/ecbs-de-guindos-july-rate-hike-is-set-20230628/">ECB's de Guindos: July rate hike is set</a></li><li><a href="https://www.forexlive.com/centralbank/ecbs-centeno-inflation-is-easing-as-quickly-as-it-went-up-20230628/">ECB's Centeno: Inflation is easing as quickly as it went up</a></li><li><a href="https://www.forexlive.com/centralbank/ecbs-muller-need-to-look-at-the-data-for-rate-hike-beyond-july-20230628/">ECB's Muller: Need to look at the data for rate hike beyond July</a></li><li><a href="https://www.forexlive.com/centralbank/ecbs-vuji-there-is-a-good-chance-of-a-september-rate-hike-20230628/">ECB's Vujčić: There is a good chance of a September rate hike</a></li><li><a href="https://www.forexlive.com/centralbank/ecbs-vasle-we-need-to-keep-tightening-policy-at-our-next-meeting-20230628/">ECB's Vasle: We need to keep tightening policy at our next meeting</a></li><li><a href="https://www.forexlive.com/news/italy-june-preliminary-cpi-64-vs-68-yy-expected-20230628/">Italy June preliminary CPI +6.4% vs +6.8% y/y expected</a></li><li><a href="https://www.forexlive.com/news/france-june-consumer-confidence-85-vs-83-prior-20230628/">France June consumer confidence 85 vs 83 prior</a></li><li><a href="https://www.forexlive.com/news/germany-july-gfk-consumer-confidence-254-vs-230-expected-20230628/">Germany July GfK consumer confidence -25.4 vs -23.0 expected</a></li><li><a href="https://www.forexlive.com/news/eurozone-may-m3-money-supply-14-vs-15-yy-expected-20230628/">Eurozone May M3 money supply +1.4% vs +1.5% y/y expected</a></li><li><a href="https://www.forexlive.com/news/us-mba-mortgage-applications-we-23-june-30-vs-05-prior-20230628/">US MBA mortgage applications w.e. 23 June +3.0% vs +0.5% prior</a></li></ul><p>Markets:</p><ul><li>USD leads, NZD lags on the day</li><li>European equities higher; S&amp;P 500 futures down 0.1%</li><li>US 10-year yields down 2.9 bps to 3.738%</li><li>Gold down 0.4% to $1,906.01</li><li>WTI crude flat at $67.73</li><li>Bitcoin down 1.1% to $30,335</li></ul><p>There weren't much meaningful headlines on the session but there were some interesting developments to take note of at least.</p><p>The yen continues to stay on the softer side with USD/JPY above 144.00 and that is still prompting verbal intervention by Japanese officials.</p><p>Meanwhile, there were some slightly mixed messaging by the ECB (the first case this week) with Centeno casting doubts over a September rate hike. Other officials were either on the fence or maintained a more hawkish view but it is a small glimpse that perhaps we are reaching a point where there might be more differing views in the central bank.</p><p>A drop in Italian inflation is also a reason for slightly lower bond yields on the day, though Treasury yields have looked heavy since Asia trading in any case.</p><p>The dollar is holding steady and mostly firmer across the board, with the big gains mostly against the antipodeans today. That owes much to a weaker aussie after a softer Australia monthly CPI data <a href="https://www.forexlive.com/news/australian-monthly-cpi-february-56-yy-vs-expected-61-20230628/" target="_blank" rel="follow">here</a>. AUD/USD is down 0.7% to 0.6635 but the kiwi is the one bearing the brunt of today's selling, with NZD/USD down 1.2% to 0.6090 currently.</p>

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