Europe Summary and Highlights 4 June
The USD fell modestly through the European morning.
The USD fell modestly through the European morning. EUR/USD gained 20 pips to 1.13980 and USD/JPY lost 10 pips to 144.10. AUD/USD rose 15 pips to 0.6475 and USD/CAD slipped 15 pips lower to 1.3710. There was a mild risk positive tone, with EUR/CHF up 15 pips to 0.9380.
The main news was the upward revision of European May PMI data, with higher service sector indices in both the Eurozone and the UK leading to a significant upward revision to the composite index. This triggered an extension of early USD weakness, but the post-data move was reversed by the end of the morning.
Asia session
The Q1 Australian GDP came in lower than estimate at 0.2% and 1.3% y/y. The household saving rate also went up to 5.2% from 3.9%, suggesting the unlikelihood of a strong rebound in consumption. Regional equities continue to outperform U.S. equities and supports the Aussie. AUD/USD is down 0.13% to 0.6454, NZD/USD is down 0.02% to 0.5996 while USD/CAD is unchanged.
The USD is trading broadly stronger on Wednesday but with limited range so far. There isn't much market moving headlines except Iran suggesting their terms on the nuclear deal. USD/JPY is trading 0.2% higher at 144.26. Else, EUR/USD and GBP/USD is down 0.03%.