Europe Summary and Highlights 16 September
The USD fell back against the riskier currencies in the European morning, but finished unchanged against the JPY slightly above 140 after making new lows for the year at 139.58 earlier in the session.
European morning session
The USD fell back against the riskier currencies in the European morning, but finished unchanged against the JPY slightly above 140 after making new lows for the year at 139.58 earlier in the session. EUR/USD advanced around 20 pips to to 1.1120, and AUD/USD gained 15 pips to 0.6740. GBP and scandis kept pace with the EUR, while EUR/CHF edged up slightly to trade above 0.94 and USD/CAD was net little changed.
There was little news of significance, but the Eurozone wage data was of interest, showing a decline in wage growth to 4.5% y/y in Q2 from 5.2% in Q1. Interest rate markets now price a 50bp Fed cut as more likely than a 25bp cut this week, underpinning the soft USD tone.
Asia Session
Over the weekend, there is another suspected assassination attempt on Trump as he was playing golf in his golf course. Trump was unharmed and the FBI are currently investigating the incident.
USD is starting the week softer as the overall sentiment does not seem to be affected so far. AUD/USD is trading higher at 0.6727, MZD/ISD also trading higher at 0.6174 while USD/CAD slipped to 1.357.
The market seems to be refocused towards the likelihood of a 50bps cut on Monday Asia session and led to a broad based USD weakness.
With some regional markets observing holiday, the moves seems to have been exaggerated and see USD/JPY reached a low at 139.94, currently trading at 140.25. Else, EUR/USD is higher at 1.1098 and GBP/USD also higher at 1.3154.