Europe Summary and Highlights 10 December
The USD gained ground against the EUR, CHF and JPY through the European morning, but was not much changed against GBP, CAD and AUD.
European morning session
The USD gained ground against the EUR, CHF and JPY through the European morning, but was not much changed against GBP, CAD and AUD. EUR/USD lost around 40 pips to 1.0525, and USD/JPY gained 50 pips to 151.65. USD/NOK was also fairly steady while the SEK fell with the EUR.
The NOK benefited from stronger than expected Norwegian November CPI, which saw the core measure rise to 3.0% y/y, above market expectations. Late in the session there was a very strong US NFIB small business optimism index, rising sharply to its highest since July 2021, but the USD gains generally came well before this.
Asia session
As per forecast, the RBA has kept interest rate at 4.35%. While headline inflation is getting closer to target range, the RBA has downplayed it by government energy subsidy and is now looking towards the mid point of target range or "underlying, RBA trimmed mean" inflation before taking action. The AUD/USD sunk further by 0.78% to 0.6390, NZD/USD also dragged 0.64% lower to 0.5827 while USD/CAD rose 0.07% on softer oil.
U.S. Treasury Yields are lower across the curve while JGB are higher and see USD/JPY unchanged at 151.21. Regional equities beat other major equity indexes as we have a strong trade number from China in November. EUR/USD is up 0.04% and GBP/USD is down 0.03%.