ForexLive European FX news wrap: Dollar, stocks down awaiting US GDP data

Headlines:

US data comes into focus in the second half of the weekThe line in the sand is shiftingJapan’s economy minister to attend BOJ policy meeting tomorrowECB’s Schnabel says may be facing a bumpy last mile on disinflationGermany May GfK consumer sentiment -24.2 vs -26.0 expectedFrance April business confidence 99 vs 100 priorUK April CBI retailing reported sales -44 vs 2 prior

Markets:

AUD leads, JPY lags on the dayEuropean equities lower; S&P 500 futures down 0.6%US 10-year yields down 0.4 bps to 4.650%Gold up 0.6% to $2,329.53WTI crude up 0.1% to $82.22Bitcoin down 0.1% to $63,955

There wasn’t too much action in European trading today as the market moves were rather straightforward during the session.

The dollar is seen down slightly ahead of the US Q1 advance GDP data coming up later. The greenback is lagging across the board, as we get close to some key technical levels on the charts.

Of note, GBP/USD is up to a two-week high above 1.2500 but faces up against its 38.2 Fib retracement level at 1.2526. Meanwhile, AUD/USD is also running up against its 200-day moving average at 0.6526 on the day. Besides that, EUR/USD is up 0.2% to 1.0720 while USD/CAD is down 0.2% to 1.3670 currently.

As for USD/JPY, it continues to hold above the 155.00 mark and hovering around 155.50-70 mostly during the session.

In the equities space, Meta’s earnings disappointment is reverberating and spooking investors. It’s dragging down tech shares but also weighing on broader sentiment as well. European stocks are mostly down as such while S&P 500 futures are lower by 0.6%.

It’s now over to the slew of US data later and how traders will take to that, putting everything into the mix on the Fed outlook again.

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