ForexLive European FX news wrap: Euro sees slight advance on hawkish ECB talk

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Headlines:ECB’s de Guindos: A rate hike is possible in July, will depend on dataECB’S Wunsch says policy rates could turn positive this yearECB’s Lagarde: Policy will depend on incoming dataBOJ Gov Kuroda says its desirable for forex rates to move stably, reflecting fundamentalsEurozone March final CPI +7.4% vs +7.5% y/y prelimFrance April business confidence 106 vs 107 priorChina commerce ministry says to roll out targeted measures to boost consumptionMarkets:EUR leads, NZD lags on the dayEuropean equities higher; S&P 500 futures up 0.9%US 10-year yields up 3.3 bps to 2.869%Gold down 0.8% to $1,941.50WTI up 1.0% to $103.21Bitcoin up 2.9% to $42,630The euro was the notable mover on the session as it got inspired by some added hawkish talk by ECB vice president Luis de Guindos, hinting at a potential rate hike in July.That saw EUR/USD move up from 1.0857 to 1.0936 before retreating to 1.0880 levels currently. There are large expiries at 1.0900-05 rolling off today helping to keep a lid on price action alongside key Fib levels pointed out here.The dollar is holding up decently, keeping above 128.00 against the yen while GBP/USD is down 0.2% to 1.3040. The aussie and kiwi are also slightly softer on the day but price movements in FX are still fairly narrow for the most part.The bond selling is continuing with Treasury yields keeping slightly higher across the curve. Meanwhile, equities are looking buoyed with US futures soaring after Tesla’s earnings was a blowout. The more positive mood is also buoying European indices on the day.Elsewhere, gold is seen struggling as it slumps to near two-week lows as price falls further after the rejection near $2,000 at the start of the week.

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