ForexLive European FX news wrap: Currencies little changed as equities stay buoyed

<p>Headlines:</p><ul><li><a href="https://www.forexlive.com/news/us-futures-nudge-higher-with-yields-holding-lower-on-the-day-20240122/">US futures nudge higher with yields holding lower on the day</a></li><li><a href="https://www.forexlive.com/news/stocks-look-to-build-on-record-high-close-in-wall-street-20240122/">Stocks look to build on record high close in Wall Street</a></li><li><a href="https://www.forexlive.com/news/chinas-big-banks-seen-selling-dollars-to-bolster-the-yuan-currency-report-20240122/">China's big banks seen selling dollars to bolster the yuan currency – report</a></li><li><a href="https://www.forexlive.com/news/chinese-stocks-routed-again-after-no-help-from-the-pboc-20240122/">Chinese stocks routed again after no help from the PBOC</a></li><li><a href="https://www.forexlive.com/news/snb-total-sight-deposits-we-19-january-chf-4734-bn-vs-chf-4763-bn-prior-20240122/">SNB total sight deposits w.e. 19 January CHF 473.4 bn vs CHF 476.3 bn prior</a></li><li><a href="https://www.forexlive.com/news/major-central-banks-back-on-the-agenda-in-trading-this-week-20240122/">Major central banks back on the agenda in trading this week</a></li></ul><p>Markets:</p><ul><li>JPY leads, AUD lags on the day</li><li>European equities higher; S&amp;P 500 futures up 0.4%</li><li>US 10-year yields down 3.8 bps to 4.086%</li><li>Gold flat at $2,029.11</li><li>WTI crude up 0.4% to $73.70</li><li>Bitcoin down 1.6% to $40,825</li></ul><p>It was a quiet session mostly with minimal movement among major currencies. The dollar was largely steadier early on but is now mildly lower at the balance as Treasury yields are slipping ahead of US trading.</p><p>10-year yields are down to 4.086%, dipping just below the 200-day moving average of 4.091% and that is putting a bit of a drag on the greenback.</p><p>USD/JPY is now down to 147.77 after having mostly stuck around 148.00, with large option expiries seen at the figure level. Besides that, the action among other dollar pairs is rather muted. EUR/USD is flat at 1.0895 while GBP/USD is up just slightly to 1.2720 on the day.</p><p>As for commodity currencies, USD/CAD is down 0.1% to 1.3418 while AUD/USD is down 0.1% to 0.6595 reflecting light changes. The latter is still suffering from China's ongoing woes, as regional stocks were routed once again after the PBOC decided to leave the LPR unchanged today.</p><p>In other markets, stocks are the biggest beneficiaries with US futures leading the charge – led by tech shares. This builds on the record close in the S&amp;P 500 at the end of last week, with traders looking to build on the break of the 4,800 mark.</p>

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