Europe Summary and Highlights 17 November
Then USD was generally firmer through the European morning, gaining against almost all the major currencies, with GBP holding its own, and scandis making some gains.
European morning session
Then USD was generally firmer through the European morning, gaining against almost all the major currencies, with GBP holding its own, and scandis making some gains. There wasn’t much news of note, with Swiss Q3 GDP the only data of significance. This showed a 0.5% q/q decline due to weakness in pharma and chemicals, likely related to US tariffs. EUR/CHF was net slightly higher on the session just above 0.9220, but showed no reaction to the data.
Otherwise, the USD gained around 0.1% against most of the majors. But GBP/USD held unchanged at 1.3155, and the scandis were both stronger on the session, with USD/SEK down 2 figures to 9.45 and USD/NOK a figure lower at 10.10.
Asia session
Over the weekend, Nikkei reported that the Japanese government is expected to unveil ¥17tn stimulus focused on cost relief and AI–chip investment. It is as widely expected Takaichi is pro-spending and this package seems to be strategical, likely focusing on SMEs, energy rebates and investing in critical area. While it maybe good news for Japanese locals now, it will definitely further weakens the JPY when market look into how the plan will be financed. USD/JPY is trading 0.06% higher at 154.60. Q3 GDP contracted less than expected by 1.8% annualized. Major drag seems to be export while private consumption barely holding on. The highlight for this preliminary data remain on strong CAPEX growth.
Geopolitical tension escalates over the weekend. With U.S. tilted towards branding Cartel de los Soles as a Foreign Terrorist Organization that is led by Venezuelan President Maduro and China issuing travel & study warning to Japan. The broad equity space is performing individually with regional equites lag U.S. peers. AUD/USD is trading 0.2% lower at 0.6522, NZD/USD is trading 0.18% lower while USD/CAD rises 0.03%. Else, EUR/USD is down 0.16% and GBP/USD is down 0.18% with opening gap not closed.