Europe Summary and Highlights 12 August

European morning session

The USD was mixed through the European morning, gaining a little ground against JPY and GBP, but falling against the AUD and the EUR. Moves were modest in largely newsless conditions. USD/JPY rose around 15 pips to 147.35, AUD/USD rose 10 pips to 0.6595, and EUR/USD was up 5 pips while GBP/USD fell 10. EUR/CHF gains 20 pips to 0.9485.

There was little news of any note. Swiss sight deposits rose CHF10bn in the latest week, indicating that there has been no SNB intervention opposition to recent CHF gains. German WPI was up 0.3% m/m but down 0.1% y/y. 

Asia Session

The USD is opening broadly higher on Monday and see major USD pairs opened with a gap in favor of the greenback which is all closed. Over the weekend, Israel was placed on High Alert as indications suggesting imminent Iran attack and US Abraham Lincoln Carrier Strike Group accelerating towards Middle East. It seems to be the retaliation from the previous assassination by Israel. The broad risk space does not seem to be bothered with major equity indexes in the green. AUD/USD has closed the minor opening gap and is trading 0.15% higher at 0.6581, NZD/USD is trading 0.21% higher at 0.6012 while USD/CAD is 0.04% higher at 1.3731.

USD/JPY continue to consolidate after the recent drop and rebounds higher to above 147 figure. Ex-Bank of Japan monetary policy board member Sakurai says he thought the Bank would be unable to hike again this year due to market volatility and the low likelihood of a rapid economic recovery. It is similar to our central forecast and is driving the USD/JPY higher for the session. USD/JPY is trading 0.37% higher at 147.14. EUR/USD is up 0.05% and GBP/USD is 0.06% higher.