Europe Summary and Highlights 14 March
EUR/USD gained half a figure late in the European morning on news that the German government collation had reached agreement with the Greens on the debt package, allowing the fiscal boost from defence and infrastructure spending to be passed.
European morning session
EUR/USD gained half a figure late in the European morning on news that the German government collation had reached agreement with the Greens on the debt package, allowing the fiscal boost from defence and infrastructure spending to be passed. The EUR is generally stronger, with GBP, JPY and CHF only marginally higher against the USD, although the scandis have broadly moved with the EUR.
Otherwise, the session was generally quiet. GBP saw some early weakness after January GDP data came in weaker than expected at -0.1% m/m due to a 0.9% decline in production. However, GBP losses were modest, with EUR/GBP only gaining around 10 pips. The German political agreement has added around 25pips to those initial gains to take EUR/GBP to 0.8420.
Asia session
The market is upbeat on Friday's Asia session as somewhat positive development in the U.S. is announced. First, the Democrats confirmed they will vote to keep the government open and Canadian FM says they will be maintaining dialogue with the U.S. after some back and forth headlines crossing the wire. USD/JPY is trading 0.51% higher at 148.55 with both the U.S. Treasury and JGB yields higher.
Optimism in the Chinese equity market continue to build as we see the Shanghai Composite reached new yearly high. There has been little headline to trigger the move, market chatters seems to be pointing towards capital inflow as a key factor. AUD/USD is up 0.18% at 0.6295, NZD/USD is up 0.26% while USD/CAD slips 0.09%. Else, EUR/USD and GBP/USD is down 0.05%.