Europe Summary and Highlights 27 February
The USD was mostly little changed through the European morning, but gained ground against the JPY and CHF.
European morning session
The USD was mostly little changed through the European morning, but gained ground against the JPY and CHF. USD/JPY rose around 60 pips to 149.90, and USD/CHF gained 20 pips to 0.8980, while EUR/USD was marginally firmer around 1.0480.
The FX moves suggest a mire risk positive market tone, but European equities were generally weaker while US futures were little changed. Data through the session was broadly in line with expectations. Spanish preliminary February CPI showed HICP unchanged at 2.9% y/y. Eurozone M3 was slightly weaker than expected at 3.8% y/y, but loans to households and businesses were both stronger on the month on a y/y basis. The European Commission business and consumer survey was marginally stronger in February than in January.
Asia session
On Thursday's Asia session, we are hearing more remarks on Trump's policy and see both the U.S. Treasury and JGB yields higher, with the latter recouping Wednesday losses and look set to close the Wednesday opening gap. Market seems to have reignited their concern towards the Trump's policy uncertainty. USD/JPY is trading 0.13% higher at 149.28.
The broad risk sentiment is sour on Thursday which seems to be dragged by the uncertainty of Trump's tariff plan. USD is trading broadly higher against majors. Regional equities in China and HK are underperforming U.S. and Japan equities. AUD/USD is trading 0.22% lower at 0.6291, NZD/USD fared worse and is down 0.34% while USD/CAD rose 0.15% as tariff concern continues to shadow the fate of Loonie. Else, EUR/USD is down 0.2% and GBP/USD is down 0.18%.