Europe Summary and Highlights 25 March
The USD was generally weaker through the European morning.
European morning session
The USD was generally weaker through the European morning. USD/JPY lost 35 pips to trade at 150.20, and EUR/USD gained 15 pips to 1.0815 after dipping to 1.0780 mid-session. AUD/USD gained 0.5% to 0.6315, while GBO marginally outperformed the EUR. The SEK was the best performer with EUR/SEK dropping 5 figures to 10.85.
The only data was the IFO survey, which was in line with expectations, showing a strong gain in the business climate index to 86.7, led by strength in expectations although current conditions were also stronger. Equities were generally higher, supporting the riskier currencies.
Asia session
In the January BoJ minutes, most members expressed the recognition that the likelihood of realizing the outlook had been rising. The January meeting saw the BoJ hike by 25bps and since there has been little change to forward guidance. It is very likely BoJ will wait for the result of wage negotiation before any new guidance. USD/JPY is trading 0.03% lower at 150.65 as U.S. Treasury underperform JGB Yields.
Chinese local news reports that China is considering multi billion services subsidies. It seems to be another attempt from China to support domestic economy. But without further details, market participants are numb to the headline and is seeing limited impact towards the regional equity sentiment. AUD/USD is up 0.05% to 0.6289, NZD/USD is down 0.09% to 0.5723 while USD/CAD is unchanged/ Else, EUR/USD is up 0.06% and GBP/USD is up 0.03%.