Europe Summary and Highlights 24 September
The USD traded higher across the board through the European morning.
European morning session
The USD traded higher across the board through the European morning. EUR/USD dropped 35 pips to 1.1765, with most of the decline coming after the release of the September IFO survey. In contrast to the September PMI survey released on Tuesday, the IFO survey showed a significant dip to 87.7 in the business climate index, against a market expectation of a rise to 89.3, and contrasting with the strong rise in the composite German PMI data, although more in line with the weaker manufacturing PMI.
However, the USD was strong across the board, with USD/JPY rising 40 pips to 148.30, and GBP/USD dropping 30 pips to 1.3475, with the EUR seeing only very modest losses on the crosses.
Asia session
The Australian August monthly CPI reached the top band of target range at 3% with trimmed mean 2.6%. Market participants seems to be reducing their anticipation of an imminent October cut but we believe trimmed mean CPI would carry more weight and persuade the RBA to cut by 25bps. AUD/USD is trading 0.28% higher at 0.6617, NZD/USD is trading 0.03% lower at 0.5857 while USD/CAD rises 0.07%.
Global equities are performing individually on Wednesday as there isn't much headline crossing the wire. Regional equities in China and Hong Kong are outperforming peers in the U.S. while Japanese equity indexes performing individually. USD/JPY is trading 0.19% higher at 147.92. Else, EUR/USD is trading 0.11% lower and GBP/USD down 0.13%.