Europe Summary and Highlights Tuesday Aug. 9, 2022

Highlights August 09, 2022 / 10:09 am UTC

Europe Summary and Highlights Tuesday Aug. 9, 2022

By Richard Lovie

August 09, 2022
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The USD fell modestly in a quiet European morning session, with EUR/USD and GBP/USD gaining around 40 pips while AUD/USD rose around 20 pips and USD/CAD and USD/JPY also fell around 20 pips. Equities were fairly flat and yields rose slightly.

Europe session

The USD fell modestly in a quiet European morning session, with EUR/USD and GBP/USD gaining around 40 pips while AUD/USD rose around 20 pips and USD/CAD and USD/JPY also fell around 20 pips. Equities were fairly flat and yields rose slightly.
News was thin on the ground. UK MPC member Ramsden indicated that further UK rate hikes were likely, but also said there may come a time when rates would have to be cut quite quickly. GBP was slightly weaker after his comments, with EUR/GBP gaining around 15 pips.
Late in the morning, the July US NFIB survey of small businesses showed a small rise from June, but it remained at low levels — the lowest since 2013. Price pressures were reported to be easing slightly, with the price index the lowest since October.

Asia session

Australian business confidence and conditions both improved in the latest survey. It seems to suggest business are still holding up against RBA's tightening cycle, which is a positive sign for the Australian economy. However, we are seeing consumer confidence weakening over the last few surveys, suggesting the inflationary pressure is further hurting consumers' willingness to spend after the previous COVID pent-up demand is released. Overall, the Australian economy still looks healthy and AUD/USD is trading lower at 0.6972 from 0.6993. NZD/USD followed to 0.6272 from 0.6293. USD/CAD up a few pips at 1.2856 from 1.2846.
Elsewhere, ranges are subdued. U.S. Treasury yields and major equity indexes marginally lower. USD/JPY slipped 2 pips to 134.91 while both the EUR and GBP gained 0.03% against the USD.

Data

AU: Westpac Consumer Confidence (Aug) -3% (Prev: -3)

AU: NAB Business Conditions (Jul) Index: 20 (Prev: 13)

AU: NAB Business Confidence (Jul) Index: 7 (Prev: 1.4)

10:00 GMT - US: NFIB Small Business Optimism Index (Jul) 89.9 Index (Mkt: 89.5 Prev: 89.5)

Still to be released

12:30 GMT - US: Non Farm Productivity (2Q P) % (Mkt: -4.5 Prev: -7.3)

12:30 GMT - US: Unit Labor Costs (2Q P) % (Mkt: 9.5 Prev: 12.6)

23:50 GMT - JP: PPI (Jul) % (Mkt: 0.4 Prev: 0.7)

23:50 GMT - JP: PPI (Jul) % (Mkt: 8.4 Prev: 9.2)

Authors

Richard Lovie

North American Summary and Highlights 26 Sep September 26, 2023

European Summary and Highlights 26 Sep September 26, 2023

Topics

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Europe Summary and Highlights Tuesday Aug. 9, 2022

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