Headline: Dollar Softens as AUD Leads; European Stocks Mixed, Gold Extends Rebound
A subdued European morning saw the US dollar drift lower while risk sentiment remained uneven across asset classes. The Australian dollar outperformed on stronger labor data, the yen held firm below 155 per dollar amid intervention vigilance, and gold extended its recovery as investors looked ahead to upcoming US releases.
Currency markets were steady but dollar-negative. USD/JPY eased to around 154.70 as traders weighed the risk of official action if the pair retests 155. Sterling briefly slipped after softer UK growth numbers before recovering, with GBP/USD rebounding above 1.31. The UK economy grew 0.1% in Q3, missing expectations, while September GDP fell 0.1% month-on-month. The euro was supported on broadly softer dollar tone and comments from ECB officials suggesting inflation progress in France is becoming more durable. The Australian dollar led majors, with AUD/USD up after a robust employment report. Elsewhere, Eurozone industrial production rose 0.2% month-on-month—below forecasts—while China’s October M2 money supply expanded 8.2% year-on-year.
Equities delivered a mixed picture. European indices were split, with the DAX softer and the CAC 40 higher, while UK stocks eased. US equity futures drifted lower ahead of the open, reflecting continued rotation out of mega-cap tech; S&P 500 and Nasdaq futures slipped 0.2%, while Dow futures were flat. US 10-year Treasury yields edged up to 4.10%. In commodities, gold advanced 0.8% to roughly $4,234, keeping buyers focused on a potential retest of the October peak as seasonal tailwinds approach. Oil firmed after the IEA raised its world oil demand growth outlook but still projected a supply surplus, pushing WTI up 0.8% near $58.93. Bitcoin added 1.0% to around $102,925.
Looking ahead, traders are focused on US data for cues on inflation, growth, and policy expectations. FX volatility remains sensitive to USD/JPY headlines, while commodities are reacting to shifting demand-supply dynamics and year-end seasonality.
Key Points: – US dollar softens in European trade; USD/JPY holds below 155 amid intervention watch – GBP dips on weak UK GDP before rebounding; UK Q3 growth +0.1%, September GDP -0.1% – AUD leads majors after strong jobs data; Eurozone industrial production +0.2% m/m – European stocks mixed; S&P 500 and Nasdaq futures -0.2%, Dow futures flat – US 10-year yield near 4.10%; gold climbs to around $4,234, oil gains with IEA outlook – Bitcoin rises about 1% to roughly $102,925 as risk assets trade unevenly
