Europe Summary and Highlights 6 December
USD/JPY was the main mover though the European morning, gaining more than half a figure on the session and reaching a high of 150.70.
European morning session
USD/JPY was the main mover though the European morning, gaining more than half a figure on the session and reaching a high of 150.70. There wasn’t a lot of news behind the move, although the Japanese wage data overnight may have been seen as slightly less strong than required to secure a BoJ hike in December. There are now just 10bps priced in for the December meeting, and 10 year JGB yields have also edged a little lower.
Otherwise, the USD was slightly softer against EUR, with EUR/USD reaching a high of 1.0594. There was nothing obvious behind the move. German industrial production for October was weaker than expected, falling 1% on the month, but stronger data in recent months means the underlying trend remains marginally positive. Eurozone GDP was unrevised a 0.4% for Q3, while employment rose 0.2%. EUR/CHF was a little softer, dropping back from 0.93 to below 0.9290, while EUR/NOK and EUR/SEK were bother firmer, rising around 3 figures each.
Asia session
The October Household spending in Japan has beaten estimate and is growing at 2.9% m/m. While the y/y figure remains in negative territory, it is better than estimate. However, labor cash earning also arrived as expected at 2.6% but is the slowest in months, which may indicate more slowing in the rest of 2024. USD/JPY is trading 0.06% lower at 150, earlier losses are partially reversed along the falling JGB yields.
Regional sentiment in China and Hong Kong is outperforming the broad equity space on Friday's Asia session. There isn't much headline in the session and most flows seem to be preparing for the U.S. NFP in the U.S. session. AUD/USD is down 0.36% at 0.6429, NZD/USD is down 0.5% to 0.5872 while USD/CAD is up 0.06% on softer oil. Else, EUR/USD is down 0.14% and GBP/USD is down 0.12%.