ForexLive European FX news wrap: Dollar steady, gold erases early spike higher

<p>Headlines:</p><ul><li><a href="https://www.forexlive.com/news/gold-peaking-too-early-in-the-cycle-20231204/">Gold peaking too early in the cycle?</a></li><li><a href="https://www.forexlive.com/news/dollar-keeps-steady-to-start-the-new-week-20231204/">Dollar keeps steady to start the new week</a></li><li><a href="https://www.forexlive.com/news/central-banks-in-focus-over-the-next-two-weeks-20231204/">Central banks in focus over the next two weeks</a></li><li><a href="https://www.forexlive.com/centralbank/ecbs-de-guindos-recent-inflation-data-is-good-news-20231204/">ECB's de Guindos: Recent inflation data is good news</a></li><li><a href="https://www.forexlive.com/news/eurozone-december-sentix-investor-confidence-168-vs-164-expected-20231204/">Eurozone December Sentix investor confidence -16.8 vs -16.4 expected</a></li><li><a href="https://www.forexlive.com/news/germany-october-trade-balance-178-billion-vs-171-billion-expected-20231204/">Germany October trade balance €17.8 billion vs €17.1 billion expected</a></li><li><a href="https://www.forexlive.com/news/switzerland-november-cpi-14-vs-17-yy-expected-20231204/">Switzerland November CPI +1.4% vs +1.7% y/y expected</a></li><li><a href="https://www.forexlive.com/news/german-businesses-retain-pessimistic-view-towards-the-year-ahead-survey-20231204/">German businesses retain pessimistic view towards the year ahead – survey</a></li></ul><p>Markets:</p><ul><li>JPY leads, AUD lags on the day</li><li>European equities lower; S&amp;P 500 futures down 0.4%</li><li>US 10-year yields up 3.1 bps to 4.254%</li><li>Gold down 0.1% to $2,069.43</li><li>WTI crude down 0.6% to $73.62</li><li>Bitcoin up 7.4% to $41,675</li></ul><p>Gold and Bitcoin are the early movers to start the new week, both surging higher right off the bat today. The former touched a fresh all-time high of $2,148 but saw the early spike retraced all the way back and is now sitting little changed just under $2,070. Meanwhile, the latter continues to impress after a brief push above $42,000 in European morning trade.</p><p>Both tickers have had a rather close correlation in trading this year, as outlined <a href="https://www.forexlive.com/news/gold-and-bitcoin-have-been-more-or-less-in-sync-this-year-20231204/" target="_blank" rel="follow">here</a>.</p><p>As for broader market sentiment, the dollar was largely steadier as bond yields are also just slightly higher while equities are just a little off the pace to start the week.</p><p>After quite an aggressive amount of rate cuts priced in, markets now have to look towards central bank decisions and key economic data in the next two weeks to validate their argument.</p><p>For now, it's just a bit of a light breather before we get to that.</p><p>USD/JPY remains stubbornly lower though, down 0.2% to 146.50 levels. But outside of that, the dollar is sitting slightly higher with EUR/USD down 0.1% to 1.0866 and AUD/USD down 0.3% to 0.6550 on the day.</p><p>In the bond market, Treasury yields are slightly higher but nothing out of the ordinary as 10-year yields are up roughly 3 bps to 4.25% at the moment. As for stocks, the gains over the last five weeks look to be consolidating a little today as investors eye the bigger events coming up later this week.</p>

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