Europe Summary and Highlights 8 Oct
Little movement in Europe for FX, as attention switches to next week.
The USD is trading sideways in Europe, with the FOMC minutes having reinforced the view that the next hike will be in December from the Fed. UST are also choppy sideways, with the failure to correct lower this week having helped USD bullishness. Next big event is the September U.S. CPI on October 14. Short-term some focus on USD/JPY after a temporary break below 158.00 in early Asia trade. On the release front, the ECB accounts will also be interesting today for clues on further ECB rate hikes. UK credit conditions survey will also be an input into the BOE decision making.
Meanwhile, the USD has not been moved by new reports from Axios that the Trump administration is discussing plans for a new attack on Iran. The FX market has a certain degree of scepticism that this is just an attempt to act tough with Iran without launching a new phase of the Iran war.
EUR crosses were consolidative meanwhile waiting the budget debate next week.