USD, EUR, JPY flows: Data mildly EUR positive
European data helping the EUR hold its own against a stronger USD
Eurozone Q3 GDP data will be released at 10GMT, and risks are to the upside of the 0.1% q/q consensus after the 0.5% from France and 0.6% from Spain, in spite of flat numbers from Italy and Germany this morning. The German state CPI data released this morning looks broadly consistent with the consensus expectation of a small drop in the y/y rate in the national data to 2.2% (HICP basis). In practice the data is unlikely to influence the ECB, and shouldn’t have much market impact, but may be mildly EUR supportive. The EUR has held its own against a stronger USD post-FOMC, and made new all-time highs against the JPY. EUR/JPY strength continues to look to be driven mostly by equity market strength, although the mildly dovish stance from the BoJ overnight has also undermined JPY sentiment.
