ForexLive European FX news wrap: Dollar and oil pull back a little

<p>Headlines:</p><ul><li><a href="https://www.forexlive.com/news/dollar-holds-tentatively-lower-so-far-on-the-day-20230928/">Dollar holds tentatively lower so far on the day</a></li><li><a href="https://www.forexlive.com/news/the-bond-market-continues-to-hold-all-the-cards-20230928/">The bond market continues to hold all the cards</a></li><li><a href="https://www.forexlive.com/news/saxony-september-cpi-54-vs-68-yy-prior-20230928/">Saxony September CPI +5.4% vs +6.8% y/y prior</a></li><li><a href="https://www.forexlive.com/news/bavaria-september-cpi-41-vs-59-yy-prior-20230928/">Bavaria September CPI +4.1% vs +5.9% y/y prior</a></li><li><a href="https://www.forexlive.com/news/spain-september-preliminary-cpi-35-vs-35-yy-expected-20230928/">Spain September preliminary CPI +3.5% vs +3.5% y/y expected</a></li><li><a href="https://www.forexlive.com/news/economic-institutes-forecast-06-gdp-contraction-for-germany-this-year-20230928/">Economic institutes forecast 0.6% GDP contraction for Germany this year</a></li><li><a href="https://www.forexlive.com/news/china-to-introduce-tax-exemptions-and-cuts-for-affordable-housing-20230928/">China to introduce tax exemptions and cuts for affordable housing</a></li></ul><p>Markets:</p><ul><li>AUD leads, USD lags on the day</li><li>European equities mixed; S&amp;P 500 futures down 0.1%</li><li>US 10-year yields up 3.7 bps to 4.647%</li><li>Gold flat at $1,875.15</li><li>WTI crude down 0.4% to $93.28</li><li>Bitcoin up 0.8% to $26,446</li></ul><p>The two main outperformers this week are the laggards today, that being the dollar and oil.</p><p>The latter raced higher in Asia trading to $95 but is marked down by 0.4% now to $93.27 while the greenback is down across the board as it gives back some of the gains this week.</p><p>EUR/USD tested waters below 1.0500 for the first time since January before bouncing up to 1.0540 levels while USD/JPY is still caught out by intervention fears, down 0.2% to 149.30 currently.</p><p>All of this comes despite higher Treasury yields on the day, with 10-year yields in the US touching above 4.64%. And that is still keeping equities rather nervous, with some selling pressure in Europe which was met by dip buyers – who seem to be keeping things interesting ahead of month-end and quarter-end.</p><p>In terms of data, we got Spanish and German inflation numbers. The former continues to reaffirm stickier price pressures while the latter is showing a decent drop, which fits expectations. That being said, the monthly readings are still rising and alongside higher oil prices, that just means the ECB cannot quite breathe easy just yet.</p>

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