European Summary and Highlights 30 May
The USD was generally lower through the European morning, losing around 0.1-0.2% against the majors.
European morning session
The USD was generally lower through the European morning, losing around 0.1-0.2% against the majors. EUR/USD rallied to 1.0810 after dropping below 1.08 in Asia, while USD/JPY continued the softer tone seen in Asia, slipping below 157.
The CHF was the best performer, with EUR/CHF dropping half a figure to 0.9810 after stronger than expected Swiss Q1 GDP data, which showed a 0.5% q/q gain against a consensus of 0.3%. The SEK also performed well, with EUR/SEK falling 4 figures to 11.50 after Swedish Q1 GDP rose a much larger than expected 0.7% q/q, although the impact was reduced because 0.5% of the rise was due to inventories.
Other data saw an EU Commission survey that was much as expected, with no major change in the confidence indices, although the business climate index did improve. Spanish CPI also came in in line with expectations at 0.2% m/m on an HICP basis.
Asia session
USD/JPY broke higher on Wednesday to a high of 157.7, a zone very close to the second round of latest intervention from the BoJ. The concern of another round of intervention, despite the lack of verbal escalation, seems to have driven some longs to take profit off the table before the weekend. 10yr JGB yields retreated from above 1.1% while U.S. Treasury Yields are performing individually. USD/JPY is trading 0.23% lower at 157.25.
China has lifted bans on beef shipments from five major Australian meat producers, which were imposed in 2020-21 and should be read as a positive sign in further defrosting the China-Australia relationship. But the Aussie is being dragged by softer regional risk sentiment and see AUD/USD slips 0.09% to 0.6604, NZD/USD dipped 0.25% to 0.6100 while USD/CAD rose 0.05% with oil slipping fifteen cents. Else, EUR/USD and GBP/USD is down 0.05%.