Europe Summary and Highlights 23 June
The USD made general gains through the European morning, rising around 0.3-0.4% against the EUR, JPY and most of the other G10 currencies, but the CHF outperformed with USD/CHF little changed.
The USD made general gains through the European morning, rising around 0.3-0.4% against the EUR, JPY and most of the other G10 currencies, but the CHF outperformed with USD/CHF little changed. Although this suggested some risk aversion, equity markets gained through the morning, with S&P futures now back above Friday’s closing levels.
European PMIs were close to consensus, with the Eurozone slightly below and the UK slightly above, although the UK survey indicated weakening pressure on services prices. The EUR was slightly softer after the data. Otherwise, news was thin on the ground with the market awaiting more Middle East developments.
Asia session
After U.S.'s strike towards Iranian nuclear site, oil has opened significantly higher with equities opening lower. While partial opening gap has been filled, they are not out of the woods yet as market participants are waiting patiently for Iran's retaliation. Iran has threatened to close the Strait of Hormuz and if factual, could see another jump in oil prices. USD is broadly bid for haven seeking and see USD/JPY is higher at 147.19, 0.77% higher than Friday's close and did not close the gap.
Major equity indexes opened lower but as session progress most gaps are closed at least once. Regional equities, except Japanese, are outperforming U.S. major equity indexes. HSI and Chinese equity indexes are in the green. AUD/USD is trading 0.65% lower at 0.6407, NZD/USD is trading 0.8% lower at 0.5919 while USD/CAD rose 0.17%. Else, EUR/USD is down 0.09% and GBP/USD is down 0.17%. Major currency pairs tried but are pips away from closing the gap.