Europe Summary and Highlights 27 June
EUR/USD gained 20 pips to 1.1710 in the European morning, while the CHF and scandis made even larger gains, with EUR/CHF and EUR/NOK dropping around 0.25%, and EUR/SEK down 0.5%.
European morning session
EUR/USD gained 20 pips to 1.1710 in the European morning, while the CHF and scandis made even larger gains, with EUR/CHF and EUR/NOK dropping around 0.25%, and EUR/SEK down 0.5%. AUD, CAD and JPY were not much changed against the USD, and GBP just about kept pace with the EUR.
European currency strength mostly preceded the French and Spanish preliminary June inflation data, which came in stronger than expected at 0.8% and 2.2% y/y respectively. Italian business confidence was also slightly stronger than expected, but the strength of European currencies looks most likely to be related to the strength of European equities, which gained around 1% on the morning following strong overnight gains in the US indices.
Asia session
Tokyo headline CPI has treaded lower at 3.1% y/y in June from 3.4% in May. With ex fresh food and ex fresh food & energy also at 3.1%, it does suggest a slight ease of inflationary pressure but still far above BOJ’s target at 2%. USD/JPY is trading 0.07% higher at 144.45.
Equities are performing individually as U.S. hails more progress in their trade agreement with China while Chinese data shows a sharp fall in industrial profits. U.S. equities are outperforming regional equities. AUD/USD is trading 0.02% lower at 0.6545, NZD/USD i up 0.05% at 0.6060 while USD/CAD rise 0.05%. Else, EUR/USD is down 0.08% and GBP/USD is down 0.02%.