ForexLive European FX news wrap: Dollar mixed, markets stay cautious

<p>Headlines:</p><ul><li><a href="https://www.forexlive.com/news/its-all-about-the-known-unknowns-right-now-20231020/">It's all about the known unknowns right now</a></li><li><a href="https://www.forexlive.com/news/usdjpy-nervy-as-traders-test-waters-at-15000-20231020/">USD/JPY nervy as traders test waters at 150.00</a></li><li><a href="https://www.forexlive.com/news/gold-runs-up-towards-next-technical-hurdle-as-geopolitical-tensions-persist-20231020/">Gold runs up towards next technical hurdle as geopolitical tensions persist</a></li><li><a href="https://www.forexlive.com/news/israel-says-that-at-any-time-hezbollah-shoots-they-will-fire-back-20231020/">Israel says that at any time Hezbollah shoots, they will fire back</a></li><li><a href="https://www.forexlive.com/news/uk-september-retail-sales-09-vs-02-mm-expected-20231020/">UK September retail sales -0.9% vs -0.2% m/m expected</a></li><li><a href="https://www.forexlive.com/centralbank/bojs-ueda-japan-economy-is-recovering-moderately-20231020/">BOJ's Ueda: Japan economy is recovering moderately</a></li><li><a href="https://www.forexlive.com/centralbank/boj-to-hold-first-long-term-monetary-policy-review-workshop-on-4-december-20231020/">BOJ to hold first long-term monetary policy review workshop on 4 December</a></li><li><a href="https://www.forexlive.com/centralbank/boes-bailey-says-expects-a-marked-fall-in-inflation-next-month-20231020/">BOE's Bailey says expects a 'marked fall' in inflation next month</a></li></ul><p>Markets:</p><ul><li>CAD leads, NZD lags on the day</li><li>European equities lower; S&amp;P 500 futures down 0.2%</li><li>US 10-year yields down 5.5 bps to 4.932%</li><li>Gold up 0.5% to $1,982.84</li><li>WTI crude up 1.5% to $89.71</li><li>Bitcoin up 4.4% to $30,001</li></ul><p>Traders are feeling sidelined for the moment awaiting further key developments in all areas, before really firming up any convictions. The bond selling hasn't yet resulted in 5% yields in 10-year Treasuries, with flows also balanced out somewhat by uncertainty and rising tensions in the Middle East.</p><p>Stocks are pinned down for now but US futures are pointing to modest losses, although European indices are hammered down towards the end of the week.</p><p>In FX, it's all about watching for USD/JPY at the 150.00 mark. The pair briefly clipped the figure level according to some quotes and that triggered a drop to around 149.60-70 before keeping just under 150.00 again now.</p><p>The pound also fell for a moment after a weak UK retail sales data, with GBP/USD slipping to 1.2095 before holding flattish around 1.2135 currently.</p><p>The loonie is the one leading gains on the day, helped out by higher oil prices with commodities still impacted by the Israel-Hamas conflict and worries surrounding the region.</p><p>WTI crude is up 1.5% to $89.71 while gold is also underpinned and testing the June and July highs at $1,983-87 on the day.</p><p>We're approaching the weekend and that could explain the more cautious approach for now, after having seen a similar take last Friday already.</p>

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