ForexLive European FX news wrap: Some bit-part relief

Headlines:

Markets:

• AUD leads, NZD lags on the day
• European equities higher; S&P 500 futures up 0.3%
• US 10-year yields up 4.7 bps to 3.537%
• Gold up 0.1% to $1,793.87
• WTI crude up 1.1% to $75.07
• Bitcoin down 0.6% to $16,738

Got that World Cup hangover? Well, I wouldn’t blame you. It was one of the best finals of a football match that I’ve watched as well.

European trading was much less exciting as the rollercoaster of emotions from last week start to settle down. Broader market sentiment points to a bit of relief after the post-Fed market mood, with stocks recovering a little after a brutal beatdown on Thursday and Friday.

The dollar is also slightly softer but is hanging on in there, with EUR/USD moving up to 1.0650 only to fall back closer to 1.0600 now – still up 0.2% on the day though.

USD/JPY was a notable mover since Asia and stuck around 136.00 mostly before moving back up now to 136.40 levels as bond yields hold higher on the day. The yen advance owed much to headlines suggesting that we might get a revision to the joint statement between the government and BOJ on policy and inflation target/outlook.

Besides that, the dollar remained slightly softer elsewhere with nothing really to shout about.

Expect markets to slowly wind down towards the Christmas period this week, so that will make for little to talk about in terms of market moves as thinner liquidity conditions are set to prevail alongside positioning flows and tax-loss selling.