ForexLive European FX news wrap: Dollar sags despite stocks falling further

<p>Headlines:</p><ul><li><a href="https://www.forexlive.com/news/usdjpy-backs-away-from-the-14500-mark-20230706/">USD/JPY backs away from the 145.00 mark</a></li><li><a href="https://www.forexlive.com/news/dollar-slips-across-the-board-ahead-of-north-america-trading-20230706/">Dollar slips across the board ahead of North America trading</a></li><li><a href="https://www.forexlive.com/news/us-treasury-secretary-yellen-to-meet-with-chinas-liu-he-on-friday-20230706/">US Treasury secretary Yellen to meet with China's Liu He on Friday</a></li><li><a href="https://www.forexlive.com/news/chinas-xi-calls-to-deepen-war-combat-planning-in-visit-to-eastern-theater-command-20230706/">China's Xi calls to deepen war, combat planning in visit to Eastern Theater Command</a></li><li><a href="https://www.forexlive.com/centralbank/boes-bailey-says-cannot-give-a-date-on-when-interest-rates-will-start-to-come-down-20230706/">BOE's Bailey says cannot give a date on when interest rates will start to come down</a></li><li><a href="https://www.forexlive.com/centralbank/snbs-maechler-further-rate-hikes-cannot-be-ruled-out-20230706/">SNB's Maechler: Further rate hikes cannot be ruled out</a></li><li><a href="https://www.forexlive.com/news/germany-may-factory-orders-64-vs-12-mm-expected-20230706/">Germany May factory orders +6.4% vs +1.2% m/m expected</a></li><li><a href="https://www.forexlive.com/news/germany-june-construction-pmi-414-vs-439-prior-20230706/">Germany June construction PMI 41.4 vs 43.9 prior</a></li><li><a href="https://www.forexlive.com/news/uk-june-construction-pmi-489-vs-510-expected-20230706/">UK June construction PMI 48.9 vs 51.0 expected</a></li><li><a href="https://www.forexlive.com/news/us-june-challenger-layoffs-4071k-vs-8009k-prior-20230706/">US June Challenger layoffs 40.71k vs 80.09k prior</a></li><li><a href="https://www.forexlive.com/news/us-mba-mortgage-applications-we-30-june-44-vs-30-prior-20230706/">US MBA mortgage applications w.e. 30 June -4.4% vs +3.0% prior</a></li></ul><p>Markets:</p><ul><li>JPY leads, CAD lags on the day</li><li>European equities lower; S&amp;P 500 futures down 0.5%</li><li>US 10-year yields up 2.6 bps to 3.971%</li><li>Gold up 0.5% to $1,926.66</li><li>WTI crude up 0.3% to $72.03</li><li>Bitcoin up 2.0% to $31,087</li></ul><p>It was another soggy session for risk sentiment, as equities continue to slump further after yesterday's losses. European indices are down over 1% across the board while US futures are holding lower ahead of key US data to come later today and also tomorrow.</p><p>The market continues to see higher rates and that is propping up bond yields, though the dollar is faltering today while the Japanese yen is the lead gainer instead.</p><p>Major currencies were initially little changed before the yen took charge, with USD/JPY falling just below 144.00 at the start of the session. That was then accompanied by a further dollar drop across the board later on, with the greenback seeing decent losses against the euro, pound, and antipodeans at the moment.</p><p>EUR/USD is up 0.4% to near 1.0900 while GBP/USD is up 0.5% to 1.2770 levels on the day. Meanwhile, despite the negative mood in stocks, the aussie and kiwi are holding their ground with AUD/USD up 0.4% to 0.6683 and NZD/USD up 0.6% to 0.6215 – both holding near the highs for the day.</p><p>It's tough to make out the flows in broader markets today but it could just be start of the quarter/half-year positioning perhaps. We'll get to US data later and that will make things more interesting before the non-farm payrolls tomorrow.</p>

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