Europe Summary and Highlights 3 September
The USD was generally slightly softer through a quiet European morning session.
European morning session
The USD was generally slightly softer through a quiet European morning session. EUR/USD gained 30 pips to 1.1660, AUD/USD was up 15 pips to 0.6530, but USD/JPY only fell back 10 pips to 148.50. EUR/GBP edged a little lower, dipping back below 0.87, helped by an upward revision in the UK August services PMI which took the UK composite PMI to its highest for a year, while the Eurozone PMI was revised slightly lower.
News was thin on the ground. Other than the final PMIs, Eurozone PPI was the only data, coming in a little stronger than expected at 0.4% m/m.
Asia session
The Australia Q2 GDP came in at +0.6% q/q, slightly higher than estimate, so as the 1.8% y/y growth. Consumption is showing some signs of picking up, which is favorable as RBA cut rates. The broad risk sentiment is sour. AUD/USD is trading 0.09% lower at 0.6515, NZD/USD is trading 0.16% lower at 0.5855 while USD/CAD rises 0.1%.
USD is trading broadly higher against majors on Wednesday. Both the U.S. Treasury and JGB yields are higher for the session with JGB yields lingering at yearly high. USD/JPY is trading 0.14% higher at 148.56. Else, EUR/USD is down 0.04% and GBP/USD is down 0.21%.