Europe Summary and Highlights 3 December
The USD was generally weaker through the European morning, with GBP and scandis making the biggest gains.
European morning session
The USD was generally weaker through the European morning, with GBP and scandis making the biggest gains. GBP/USD rose 40 pips to 1.3285, helped by an upward revision to the UK services and composite PMI for November. The composite PMI was revised up to 51.2 from 50.5, but was still down from the 52.2 in October. Swedish services PMI was the strongest since June 2022. There was also an upward revision to the Eurozone composite PMI to 52.8 from 52.4, the highest level since April 2023, helping EUR/USD move up 20 pips to 1.1660. USD losses elsewhere were more modest, with AUD and JPY up around 0.1% and USD/CAD down 20 pips to 1.3945.
EUR/CHF moved marginally higher helped by weaker than expected Swiss CPI which fell 0.2% m/m in November and is unchanged y/y.
Asia session
The Australian Q3 GDP has missed estimate at 0.4% q/q, dragged by weaker consumption. It was to an extent previewed by Tuesday's poor current account deficit and seems to persuade market participants that there maybe no more rate cut from the RBA as non seasonally adjusted y/y GDP remain at 2.1%. AUD/USD dipped as a knee jerk reaction by 20 pips but those losses are quickly erased and we see AUD/USD trading 0.24% higher at 0.6581. NZD/USD is trading 0.26% higher while USD/CAD rises 0.06%.
The USD is trading broadly lower on Wednesday against major. U.S. major equity indexes are upbeat while regional equities perform individually. The November service PMI for Japan continue to points toward higher input cost and could support a December hike from the BoJ. USD/JPY is trading 0.12% lower at 155.67. Else, EUR/USD is up 0.17% and GBP/USD is up 0.18%.