Europe Summary and Highlights 5 December
The USD gained ground through the European morning, with the JPY the biggest loser, USD/JPY rising 60 pips to 155.10.
European morning session
The USD gained ground through the European morning, with the JPY the biggest loser, USD/JPY rising 60 pips to 155.10. EUR/USD dropped a modest 10 pips to 1.1650, with other European currencies seeing similar losses, but AUD/USD gained 10 pips to 0.6635.
German October manufacturing orders data was stronger than expected, rising 1.5% m/m, while French October industrial production was also stronger than expected at 0.2% m/m, and Eurozone Q3 GDP was revised up slightly to 0.3% q/q, although the y/y rate was unrevised at 1.4%. The EUR gained slightly initially after the German orders data, but gains were short-lived. There was no obvious trigger for JPY losses, which only reversed overnight gains.
Asia session
The Japan October Household Spending fell by 3.0% y/y, missing estimate of a humble growth. Consumer demand is destined to be choppy, given the negative real wage in past month. However, this should not be viewed as a reversal of the already changing consumer behavior. Around noon in Asia, Bloomberg reported that the BoJ is tilted toward hiking in the December meeting. It gave the JPY a boost and see USD/JPY trading 0.13% lower at 154.85.
The broad risk atmosphere is undecided with equity indexes performing individually. So far on Asia Friday, we are seeing upbeat U.S. equities while regional equities choppy. AUD/USD is trading 0.15% higher at 0.6619, NZD/USD is trading 0.08% higher while USD/CAD slips 0.04%. Else, EUR/USD and GBP/USD are up 0.1%.