ForexLive European FX news wrap: Dollar gains abate as Treasury yields surge eases off

<p>Headlines:</p><ul><li><a href="https://www.forexlive.com/news/dollar-down-slightly-as-the-bond-selling-comes-off-the-boil-for-now-20231004/">Dollar down slightly as the bond selling comes off the boil for now</a></li><li><a href="https://www.forexlive.com/news/the-bond-rout-cools-off-a-little-for-now-at-least-20231004/">The bond rout cools off a little, for now at least</a></li><li><a href="https://www.forexlive.com/centralbank/ecbs-centeno-inflation-is-falling-faster-than-when-it-was-rising-20231004/">ECB's Centeno: Inflation is falling faster than when it was rising</a></li><li><a href="https://www.forexlive.com/news/eurozone-august-retail-sales-12-vs-03-mm-expected-20231004/">Eurozone August retail sales -1.2% vs -0.3% m/m expected</a></li><li><a href="https://www.forexlive.com/news/eurozone-august-ppi-06-vs-06-mm-expected-20231004/">Eurozone August PPI +0.6% vs +0.6% m/m expected</a></li><li><a href="https://www.forexlive.com/news/eurozone-september-final-services-pmi-487-vs-484-prelim-20231004/">Eurozone September final services PMI 48.7 vs 48.4 prelim</a></li><li><a href="https://www.forexlive.com/news/uk-september-final-services-pmi-493-vs-472-prelim-20231004/">UK September final services PMI 49.3 vs 47.2 prelim</a></li><li><a href="https://www.forexlive.com/news/us-mba-mortgage-applications-we-29-september-60-vs-13-prior-20231004/">US MBA mortgage applications w.e. 29 September -6.0% vs -1.3% prior</a></li><li><a href="https://www.forexlive.com/news/saudi-arabia-reaffirms-will-continue-voluntary-oil-output-cuts-until-end-of-december-20231004/">Saudi Arabia reaffirms will continue voluntary oil output cuts until end of December</a></li></ul><p>Markets:</p><ul><li>GBP leads, NZD lags on the day</li><li>European equities higher; S&amp;P 500 futures up 0.1%</li><li>US 10-year yields down 1.5 bps to 4.787%</li><li>Gold up 0.1% to $1,824.08</li><li>WTI crude down 2.0% to $87.47</li><li>Bitcoin up 0.7% to $27,580</li></ul><p>As we got into European morning trade, yields were running hot once again and we saw 10-year Treasury yields hit 4.88%. That kept the dollar more bid while equities were smashed lower, with S&amp;P 500 futures marked down by 0.6%.</p><p>But as the session trudged along, yields reversed lower in a welcome relief for broader markets after yesterday's moves.</p><p>The greenback lost ground and is sitting lower on the day while S&amp;P 500 futures turned things around to be up 0.1% currently, as 10-year Treasury yields fall down to 4.78%.</p><p>It's a bit part relief for the most part and perhaps a tentative one as we still have US trading to navigate through.</p><p>EUR/USD moved up from 1.0460 to 1.0500 while AUD/USD recovered some poise from 0.6290 to 0.6320-30 currently. Meanwhile, despite Tokyo intervention, USD/JPY is largely steady at around 148.95 but was hovering closer to 149.10-20 levels earlier in the day.</p><p>With US ADP employment data coming up, the focus stays on the bond market (and how that impacts broader sentiment) still ahead of the Friday jobs report.</p>

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