European Summary and Highlights 22 August
GBP made gains after stronger than expected PMIs from both the UK and the Eurozone.
European morning session
GBP made gains after stronger than expected PMIs from both the UK and the Eurozone. The Eurozone data was less impressive, as the manufacturing index dipped slightly and although the services and composite indices rose they benefited from a very strong rise in the services index in France, which was likely due to the Olympics. However, the UK data showed gains in both manufacturing and services, with the manufacturing index hitting its highest for 2 years. EUR/GBP fell around 30 pips to 0.8487, while EUR/USD was marginally softer at 1.1140. The USD gained ground against the JPY, rising around 30 pips to 145.60, and lost a little ground to the CAD, with USD/CAD falling 10 pips to 1.3580. AUD/USD was net little changed.
EUR/NOK edged a little higher to 11.74, after slightly weaker than expected mainland GDP data for Q2, which showed a 0.1% q/q increase.
Asia session
On Thursday, the volatility in USD/JPY shrinks compared to previous trading days as U.S. Treasury Yields little changed for the session so far. USD/JPY is trading almost unchanged at 145.09 while JGB yields outperforming the U.S. counterpart.
Regional equities are performing individually with earlier gains diminished in the past hour. U.S. three major equity indexes are lower in Asia session and USD trading broadly stronger. AUD/USD is 0.18% higher at 0.6731, NZD/USD trades slightly higher at 0.6152 while USD/CAD is lower at 1.3588. Else, EUR/USD is lower at 1.4522 and GBP/USD is also trading lower at 1.3086.