Europe Summary and Highlights 13 Jul
Europe yawns at w/e escalation, returns to Friday's balance
Quiet calendar until US CPI
European morning session
A quiet Monday morning for FX, this despite the re-escalation over the weekend in Iran. Asia reaction was already fairly modest and Europe has pretty much reversed even that to return to the Friday mood– namely, mainly drift and if anything the dollar finding it hard to get lasting new traction.
EUR/USD therefore back into 1.14-1.145 prevailing stall area for instance, and kiwi still the only currency really doing its own thing, almost back to Friday’s highs.
Oil has also eased off, with Bent front month now only $1 ½ having been capped and rolled back from $80 again. The market still has a huge amount of patience for this ‘arm wrestle’ to play out
Very little news other than Iran, with the next main focus coming from US CPI and Warsh testimony Tuesday.
Asia Session
The Middle East situation worsens as both sides exchanged more missiles. AUD/USD is trading 0.34% lower with major equity indexes all lower with gaps not closed. NZD/USD is trading 0.11% lower while USD/CAD uncharged despite both Brent and WTI up more than three usd/b.
Rising along JGB yields, the USD/JPY recaptures the 162 handle,0.24% higher for the session. Else, EUR/USD is down 0.11% and GBP/USD is down 0.15%.