European Summary and Highlights 09 July
The USD was generally a little firmer through a quiet European morning, EUR/USD losing around 10 pips to 1.0820 and USD/JPY gaining 20 pips to trade above 161.
European morning session
The USD was generally a little firmer through a quiet European morning, EUR/USD losing around 10 pips to 1.0820 and USD/JPY gaining 20 pips to trade above 161. GBP was little changed against the USD. EUR/SEK fell back 3 figures, reversing some of the sharp rise seen yesterday.
There was no European data of any note but we did see the latest US NFIB survey at the end of the morning, which was stronger than expected, recovering recent declines to reach the highest level this year.
Asia session
The Bank of Japan will be holding in-person meetings with market participants this week, including banks, securities firm and bond purchasing FI, in regard of the coming changes in bond purchase program to be announced on 30th July. Currently, market participants are expecting more than 1 trillion JPY cut in the first year and 2-3 trillion JPY cut in the second year. It looks like the BoJ is getting market participants ready for the cut and checking out response from them. USD/JPY is trading 0.12% higher at 160.98 while U.S. Treasury yields are steady across the curve and JGB yields slips.
Else, there is not much in the FX market with USD a tad softer. GBP/USD, USD/CAD and NZD/USD are unchanged. EUR/USD is up 0.04% and AUD/USD is up 0.07% as risk sentiment is broadly positive.