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Dollar finds bids in early European tradingDollar tested on Trump's drama but continues to hold the line for nowTrump's threat of firing Fed Chair Powell is just noiseGold Technical Analysis – The rangebound price action continuesHow have interest rates expectations changed after the US inflation data?China says problem with fentanyl issue lies with the US itselfUS Treasury secretary Bessent to pay "courtesy visit" to Japan PM Ishiba tomorrowJapan trade negotiator Akazawa will be in Osaka to host US delegation this weekendEurozone June final CPI +2.0% vs +2.0% y/y prelimUK May ILO unemployment rate 4.7% vs 4.6% expectedMarkets:
The dollar is shaking off the nerves from yesterday as the short squeeze takes on another leg in trading this week. After Trump threatened to fire Fed chair Powell, the dollar fell sharply but has more than recovered today in pushing higher as other major currencies stumble against the greenback.
It's a straightforward bid across the board as dollar buying appetite holds the line. EUR/USD fell from 1.1610 to 1.1570 while USD/JPY held firm in a marginal push higher from 148.60 to 148.75 during the session.
There are modest moves in commodity currencies though, with USD/CAD moving up from 1.3715 to 1.3760 levels. Meanwhile, AUD/USD is punished hard after a softer Australian jobs report as well. The pair is now down 1% on the day to 0.6455 at the lows. Double whammy.
As the dollar pushed higher, it comes amid a steadier backdrop in the equities space. European indices are looking to pare losses on the week, cutting back a chunk of the declines today after having missed out on the late bounce in Wall Street yesterday.
US futures are calmer today, holding little changed as investors continue to see unrelenting optimism in tech shares. Nvidia's growth this year has been staggering, accounting for nearly 5% of the MSCI All Country World Index now. That weightage alone is a major standout as it beats the share of the likes of Japan, UK, France, and Germany handily. (h/t @ KobeissiLetter)
In the bond market, Treasury yields are also nudging back up a little after the drop yesterday. 30-year yields are still keeping above 5% comfortably and that's still a caution signal for broader markets with 10-year yields also looking to nudge higher as well.
In the commodities space, gold is moving back down as the dollar comes up but is still more rangebound in the bigger picture. The precious metal continues to tow the line in and around the $3,300 mark for the time being.
It's on to US retail sales and initial weekly jobless claims data next on the agenda.
This article was written by Justin Low at www.forexlive.com.Hence then, the article about forexlive european fx news wrap dollar shrugs off trump powell drama to move higher was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
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