ForexLive European FX news wrap: Dollar falls further, ECB coming up next

<p>Headlines:</p><ul><li><a href="https://www.forexlive.com/news/dollar-stays-in-retreat-mode-so-far-on-the-session-20230727/">Dollar stays in retreat mode so far on the session</a></li><li><a href="https://www.forexlive.com/news/equities-pull-higher-in-european-morning-trade-20230727/">Equities pull higher in European morning trade</a></li><li><a href="https://www.forexlive.com/news/what-to-expect-from-the-ecb-later-today-and-how-will-the-euro-react-20230727/">What to expect from the ECB later today and how will the euro react?</a></li><li><a href="https://www.forexlive.com/news/what-are-the-key-dates-to-watch-before-the-next-fomc-meeting-in-september-20230727/">What are the key dates to watch before the next FOMC meeting in September?</a></li><li><a href="https://www.forexlive.com/news/germany-august-gfk-consumer-confidence-244-vs-247-expected-20230727/">Germany August GfK consumer confidence -24.4 vs -24.7 expected</a></li><li><a href="https://www.forexlive.com/news/uk-july-cbi-retailing-reported-sales-25-vs-9-prior-20230727/">UK July CBI retailing reported sales -25 vs -9 prior</a></li><li><a href="https://www.forexlive.com/news/china-tries-to-play-down-malicious-hype-on-qin-gangs-removal-from-minister-post-20230727/">China tries to play down 'malicious' hype on Qin Gang's removal from minister post</a></li></ul><p>Markets:</p><ul><li>NZD leads, USD lags on the day</li><li>European equities higher; S&amp;P 500 futures up 0.6%</li><li>US 10-year yields up 1.8 bps to 3.868%</li><li>Gold up 0.2% to $1,976.47</li><li>WTI crude up 0.9% to $79.51</li><li>Bitcoin down 0.3% to $29,481</li></ul><p>The dollar was mildly lower in Asia but extended its post-FOMC losses in Europe today. Powell kept the door open for a September move but was not adamant about it and markets took that as a message that perhaps we have already seen a peak in interest rates in the US.</p><p>EUR/USD moved up from 1.1100 to 1.1150 and is holding just below that while GBP/USD pulled higher from 1.2940 to a high of 1.2995 but is now just marginally higher at 1.2960. The euro will be in focus with the ECB coming up next and <a href="https://www.forexlive.com/news/what-to-expect-from-the-ecb-later-today-and-how-will-the-euro-react-20230727/" target="_blank" rel="follow">the risks might be skewed to the downside</a> for the single currency.</p><p>Anyway, the dollar is lower across the board with USD/CHF also dropping back below 0.8600 and AUD/USD held its early gains at around 0.8600 – up 0.6% since Asia amid a stronger Chinese yuan and better risk sentiment as well.</p><p>Equities were solid throughout with European equities rebounding from yesterday's setback, while tech shares are driving US futures higher. Nasdaq futures are up 1.2% currently and that tees up a more positive mood ahead of Wall Street later. The Dow looks poised for a record streak, after matching 13 straight days of gains already – first since 1987.</p><p>It's now over to Lagarde &amp; co. to deliver the next part of the central bank bonanza this week, before the BOJ wraps things up tomorrow.</p>

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