European Summary and Highlights 10 May
GBP was slightly firmer in the European morning, following the stronger than expected Q1 UK GDP data which showed a rise of 0.6% against market expectations of a 0.4% increase.
European morning session
GBP was slightly firmer in the European morning, following the stronger than expected Q1 UK GDP data which showed a rise of 0.6% against market expectations of a 0.4% increase. The strength was seen in both services and industrial production, although construction remained weak. However, from the expenditure side, most of the rise was due to weakness in imports, and this took some of the force out of the data. EUR/GBO finished only slightly lower at 0.8602 after opening near 0.8610.
The NOK also made gains through the session, with EUR/NOK around 4 figures lower at 11.66 after a slightly stronger than expected Norwegian April core CPI rise of 4.4% y/y. Otherwise, there was little movement in FX.
Asia session
As USD/JPY hovers around 156 figure, we continue to hear jawboning from Japanese finance minister after the rally pause after three green days. The latest March Household Spending are showing positive domestic demand at +1.2% m/m despite still down 1.2% y/y. Private consumption has been a key driver for the Japanese economy and such should be supportive for Japanese economic growth. USD/JPY is up 0.18% at 155.69 with U.S. Treasury Yields outpace JGB yields.
Bloomberg reported that the U.S. is planning to impose sanctions on Chinese strategic sectors, including EV, batteries and solar panel. It looks like Biden is playing catch up on his hawkishness when a competition with Trump is close. Chinese equities are subsequently being outperformed by other regional indexes while U.S. indexes are pips in the green. AUD/USD are being dragged by such sentiment and slipped 0.19% to 0.6606, so as NZD/USD down 0.19% to 0.6023 while USD/CAD rose 0.06%. Else, EUR/USD and GBP/USD is down 0.07%.