Europe Summary and Highlights 19 May
EUR/USD gained 80 pips through the European morning as the USD fell back across the board following the Moody’s downgrade at the weekend.
EUR/USD gained 80 pips through the European morning as the USD fell back across the board following the Moody’s downgrade at the weekend. The EUR gained ground on most crosses as well, with EUR/CHF up 40 pips to 0.9390, and EUR/GBP up a modest 10 pips to 0.8420. EUR was little changed against the scandis. AUD/USD gained 35 pips to 0.6445, while USD/CAD dropped 25 pips to 1.3945. USD/JPY dropped 35 pips to 144.85. US yields were generally higher, particularly at the long end, and equities were lower.
There was no news of any real note, with Eurozone April CPI unrevised at 2.2% y/y headline, 2.7% core.
Asia session
The broad risk market is opening lower on Monday as market participants digest Moody's downgrade of U.S.. Major U.S. equity indexes are down and remains volatile but the magnitude are so far limited. Japan PM Ishiba says again can't accept US tariffs on autos, suggesting the trade deal between U.S. and Japan is unlikely to be imminent. USD/JPY opened almost 40 pips lower than Friday's close and continues to trade 0.24% lower at 145.26 from session low of 144.8 as U.S. 10yr Treasury Yields caught up with JGB yields.
Major equity indexes stay low as the Asia session approaches lunch time. There is little new headlines with the slate of Chinese data close to estimate. USD has been trading mostly weaker against majors but off session low. AUD/USD is trading 0.15% higher at 0.6412, NZD/USD also 0.15% higher at 0.5890 while USD/CAD is unchanged from Friday's close. Else, EUR/USD is up 0.18% and GBP/USD up 0.13%.