Europe Summary and Highlights 3 Jul
Relatively quiet into US holiday, bar a mini USD/JPY dip
EZ PMI revised up
European morning session
Going into the US holiday, not the most active European morning. USD/JPY did see a pale imitation of yesterday with a much smaller little burst of short yen covering during the session handover, dropping to 160.50~. Consolidating around the 161 figure after.
General backdrop since payrolls is still the dollar a little better offered and risk somewhat supported, but broadly consolidation currently in play. EUR/USD remains around the 1.1450~ balance area seen after the prints.
Data this morning shows some improvement with the global backdrop / energy relief. Final EZ service PMI 49.4 vs 48.9 prelim, with composite 50 vs 49.5. Upward revision coming from Germany., and big rise in Spanish service PMI
French industrial output -0.1%m/m vs mkt -0.4%.
Asia Session
USD/JPY has been capped on Friday as market participants are concerned about "silent intervention". It looks like the latest tactic of no jawbone intervention has kept market participants frosty, but unlikely for long. The medium term bias remain north as rate expectation for BoJ is very reserved. USD/JPY is trading 0.02% lower at 161.07.
Market broadly upbeat after a miss in NFP. U.S. major equity indexes are outperformed by regional equities in Japan and Hong Kong. AUD/USD is trading 0.29% higher at 0.6942 on stronger precious metal. NZD/USD is trading 0.36% higher while USD/CAD slips 0.15%. Else, EUR/USD is up 0.18% and GBP/USD is up 0.2%.