European Summary and Highlights 23 July
There was a risk negative bias to FX trading through the European morning, with the JPY making general gains and the riskier currencies also falling against the USD.
European morning session
There was a risk negative bias to FX trading through the European morning, with the JPY making general gains and the riskier currencies also falling against the USD. EUR/JPY fell a big figure to 169.50, while EUR/USD lost 20 pips to 1.0870 and USD/JPY fell to a low of 155.82 before bouncing slightly. AUD/USD also lost around 10 pips to 0.6625, extending overnight declines, but USD/CAD was little changed. GBP lost a little against the USD but EUR/GBP fell 10 pips to 0.8415.
There wasn’t much in the way of news, with no European data of any note. The risk negative tone in currencies was not mirrored in equities, with most of the developed market indices edging higher through the morning.
Asia session
It is a rather empty economic calendar day with little headlines. The only one we got is Vice President K. Harris has secured enough delegates to be racing against Trump. U.S. Treasury Yields are lower across the curve while JGB yields rise. USD/JPY is trading 0.4% lower at 156.37, which may suggest the turn for JPY has arrived.
Global risk sentiment is broadly soft. The Aussie is further dragged lower by weak consumer sentiment to trade 0.12% lower against the USD at 0.6634, NZD/USD is down 0.19% to 0.5967 while USD/CAD rose 0.05%. Else, EUR/USD is up 0.02% and GBP/USD down 0.03%.