Europe Summary and Highlights 6 June
The USD was generally firmer through the European morning, gaining around 0.2% across the board, with the exception of USD/CAD, which gained just 0.1%.
The USD was generally firmer through the European morning, gaining around 0.2% across the board, with the exception of USD/CAD, which gained just 0.1%. EUR/USD has corrected most of yesterday’s post-ECB press conference gains, and EUR yields dropped back this morning.
There wasn’t any noticeable reaction to the morning’s data. Eurozone Q1 GDP was revised up sharply to 0.6% q/q from the 0.3% originally reported, with a 9.7% q/q rise in Ireland largely responsible. Ex-Ireland GDP rise just 0.2%. Earlier, German industrial production was weaker than expected, falling 1.4% m/m in April, but the underlying trend continues to show evidence of growth.
Asia session
The Japan April household spending contracts -0.1% y/y. It was expected the household spending in April will continue to point upwards but seems to be dragged by negative real wage. Furthermore, the start of Q2 are not likely to be contributing much for economic growth from private consumption. USD/JPY is trading 0.22% higher at 143.82 but the Trump-Musk fiasco continues to attract attention.
The broad risk market stays choppy even after U.S. major equity indexes rebound on calmer Trump and Musk. Regional equities in China and Hong Kong has retreated from earlier high while Nikkei stay solid. With USD retracing partial gains. AUD/USD is down 0.07% to 0.6509, NZD/USD is trading 0.23% higher at 0.6049 while USD/CAD slips 0.1%. Else, EUR/USD is down 0.03% and GBP/USD is up 0.05%.