Europe Summary and Highlights 30 September
The USD was generally weaker through the European morning, with the JPY once again he best performer.
European morning session
The USD was generally weaker through the European morning, with the JPY once again he best performer. USD/JPY fell 35 pips to 147.95, while EUR/USD gained 20 pips to 1.1750. Other European currencies fell back against the EUR, and were mostly little changed against the USD, as was the CAD, while the AUD was only marginally firmer.
Data was generally as expected, with UK Q2 GDP unrevised, and mixed September HICP data from the Eurozone, with the French data a little on the soft side, The Italian data broadly in line, but the German state data stronger than expected. There was little change in European yields, but US yields continued to edge a little lower, likely reflecting concerns about a potential US government shutdown tomorrow.
Asia session
The latest BoJ meeting summary is showing a split with tilt towards normalization. It came at no surprise as we see inflationary pressure piling and external factors dissipating. USD/JPY is trading 0.15% lower at 148.28 with the front end yields outperforming far end.
Trump announced a new tariff on lumber and timber, with a 10% base and certain wooden products up to 25% while E.U. and Japan import are capped by 15%. U.S. major equity indexes' reaction is muted while regional equities perform individually. AUD/USD is trading 0.29% higher at 0.6596 after RBA keeping rates unchanged at 3.6%, NZD/USD is trading 0.3% lower at 0.5794 while USD/CAD is unchanged. Else, EUR/USD is up 0.06% and GBP/USD is up 0.05%.