European Summary and Highlights 11 Dec
USD/JPY extended the recovery seen through the Asian session in the European morning, gaining half a figure to 144.60, while other pairs were mostly unchanged.
European morning session
USD/JPY gained a big figure through the European morning, rising on the back of a Bloomberg report indicating that the BoJ would not hike rates at the December meeting. Otherwise, activity was fairly subdued, but EUR/USD edged marginally higher, and GBP/USD made more substantial gains, rising around 30 pips to 1.2570. EUR/NOK gained around 3 figures to 11.78 after Norwegian November CPI came in a little weaker than expected at 4.8% y/y, 5.8% core.
Asia session
USD is trading broadly higher on Monday's Asia session, following up on the Friday's NFP momentum. U.S. Treasury Yields are higher across the curve while JGBs are closing the opening gap. There is little headline from the BoJ before their meeting next week but most market participants are anticipating at least a change in forward guidance in the coming meeting. USD/JPY is trading 0.46% higher at 145.63.
Over the weekend, we have the Chinese CPI came in much lower at -0.5% y/y vs -0.1% expected. It came as a surprise as there has been more iron ore import from China recently. The Chinese Yuan weakened to level last seen in late November and in the process dragged the Antipodeans lower. Regional equities in China and HK sunk while global equities are performing individually. The AUD/USD is down 0.33% to 0.6553, NZD/USD is 0.19% lower at 0.6110 while USD/CAD rose 0.2% to 1.3604. Elsewhere, EUR/USD is 0.04% higher and GBP/USD is 0.09% lower.