European Summary and Highlights 11 June
EUR/GBP managed some initial gains in the European morning, benefiting from generally weaker than expected UK labour market data.
European morning session
EUR/GBP managed some initial gains in the European morning, benefiting from generally weaker than expected UK labour market data. Although the official average earnings data for the 3 months to April was a little stronger than expected at 5.9% y/y, the more up to date HMRC data for May saw a decline to 5.2% y/y. There was also weakness in the employment data, which showed a 140k decline in the 3 months to April, while the claimant count rose 50.4k – the most since February 2021. EUR/GBP initially gained to 0.8665 from an open near 0.8655, but fell back below opening levels by the end of the session, reaching 0.8440, just above yesterday’s lows.
Otherwise the session was relatively quiet, but the EUR was generally soft, with EUR/USD falling back from 1.0770 to 1.0750. The JPY was weak in the early part of the morning, with USD/JPY climbing to a high of 157.40 from an open around 157.25, but fell back to 157.20 by the end of the morning. There as a mild deterioration of risk sentiment through the morning, with yield and equities both lower, so that the AUD fell back after initial gains and EUR/CHF pushed lower,
Asia session
After the PBoC fixed yuan at the weakest since January, USD/CNY has weakened to level last seen in November 2023 and the "National Team" stepped in to sell USD to buy Yuan. Chinese Builder Dexin Receives Liquidation Order From Hong Kong Court. Chinese equity sentiment seems to be affected and is down by more than a percent, so as HK equities. With major sentiment soft, AUD/USD is trading 0.23% at 0.6595, NZD/USD also 0.15% lower at 0.6119 while USD/CAD rose 0.06% on weaker oil.
USD/JPY is slowly grinder higher for the week. We are quickly approaching the late May high at 157.71, currently trading at 157.24, up 0.14% for the session. Both the U.S. Treasury and JGB Yields are lower across the curve. Suzuki did cross the wire yet it is not regarding FX moves and seems to let USD took the wheels for the pair. Else, EUR/USD is up 0.03% and GBP/USD up 0.04%.