Europe Summary and Highlights 22 October
FX markets were generally quiet through the European morning, with little net change in most pairs.
European morning session
FX markets were generally quiet through the European morning, with little net change in most pairs. GBP was slightly weaker, with EUR/GBP rising around 15 pips to 0.8335, but EUR/USD was net little changed, reversing mid session gains, and USD/JPY was also steady near the new highs reached overnight.
There was no data of much significance. UK public sector borrowing in September was GBP16.6bn, than expected.
Asia Session
While the market is anticipating more verbal intervention from the Japan side as USD/JPY rose past 150, Japan deputy chief cabinet secretary says no comment on FX level. It seems to suggest the government is not exerting much concern to the current level and will not likely to intervene anytime soon. USD/JPY rose 0.06% to 150.90 while JGB outperforming U.S. Treasury Yields at the opening.
The broad risk mood is individual on Tuesday, led by the one percent fall in Nikkei while Chinese and HK equities gaining more than half a percent.AUD/USD is trading 0.42% higher at 0.6687, NZD/USD also 0.46% higher at 0.6058 at the advantage of barrage of Fed speakers favouring more rate cut on their Tuesday’s remark while USD/CAD is unchanged. Else, EUR/USD is up 0.05% and GBP/USD up 0.11%.