ForexLive European FX news wrap: Dollar sags in run up to CPI

<p>US CPI run up:</p><ul><li><a href="https://www.forexlive.com/news/us-inflation-the-main-event-in-trading-today-20231212/">US inflation the main event in trading today</a></li><li><a href="https://www.forexlive.com/news/inflation-data-today-to-help-keep-the-fed-status-quo-20231212/">Inflation data today to help keep the Fed status quo?</a></li><li><a href="https://www.forexlive.com/news/fed-rate-cut-in-march-too-soon-but-remains-a-possibility-bofa-20231212/">Fed rate cut in March too soon but remains a possibility – BofA</a></li><li><a href="https://www.forexlive.com/news/impact-of-us-cpi-data-to-near-term-monetary-policy-outlook-should-be-limited-nomura-20231212/">Impact of US CPI data to near-term monetary policy outlook should be limited – Nomura</a></li></ul><p>Headlines:</p><ul><li><a href="https://www.forexlive.com/news/uk-november-payrolls-change-12k-vs-33k-prior-20231212/">UK November payrolls change -12k vs 33k prior</a></li><li><a href="https://www.forexlive.com/news/germany-december-zew-survey-current-conditions-771-vs-760-expected-20231212/">Germany December ZEW survey current conditions -77.1 vs -76.0 expected</a></li><li><a href="https://www.forexlive.com/news/germany-november-wholesale-price-index-02-vs-07-mm-prior-20231212/">Germany November wholesale price index -0.2% vs -0.7% m/m prior</a></li><li><a href="https://www.forexlive.com/news/us-november-nfib-small-business-optimism-index-906-vs-907-prior-20231212/">US November NFIB small business optimism index 90.6 vs 90.7 prior</a></li><li><a href="https://www.forexlive.com/news/china-says-will-consolidate-and-enhance-economic-recovery-20231212/">China says will consolidate and enhance economic recovery</a></li><li><a href="https://www.forexlive.com/news/china-confirms-that-it-held-its-annual-central-economic-work-conference-this-week-20231212/">China confirms that it held its annual Central Economic Work Conference this week</a></li></ul><p>Markets:</p><ul><li>JPY leads, USD lags on the day</li><li>European equities mixed; S&amp;P 500 futures up 0.1%</li><li>US 10-year yields down 5 bps to 4.189%</li><li>Gold up 0.3% to $1,988.03</li><li>WTI crude down 0.6% to $70.89</li><li>Bitcoin up 1.9% to $41,882</li></ul><p>It was a quiet session understandably as markets are waiting on the US CPI data later. However, the dollar sagged alongside bond yields as traders are perhaps pre-conceiving what might transpire when we get to the key risk event later today.</p><p>The yen was the main beneficiary with USD/JPY falling from around 145.50 in Asia to 145.15 currently, down 0.7% on the day. EUR/USD is also seen up slightly by 0.4% to 1.0800 while AUD/USD is up 0.3% to 0.6585 since earlier in the day.</p><p>The pound is a little less enthused after a slightly softer UK jobs report, which reinforces a further pause by the BOE and perhaps even rate cut expectations for the middle of next year. GBP/USD dipped from 1.2580 to 1.2550 before keeping around 1.2560-70 levels now.</p><p>In the equities space, stocks are not too excited as investors are waiting on the inflation numbers later before committing to anything.</p><p>We're about 30 mins away now, so strap yourselves in. This is where the week finally begins.</p>

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