European Summary and Highlights 15 May
USD/JPY dropped around 60 pips through the European morning, falling back from the 156.40 area at the open, and GBP almost kept pace with JPY strength, with GBP/USD gaining 30 pips to 1.2625.
European morning session
USD/JPY dropped around 60 pips through the European morning, falling back from the 156.40 area at the open, and GBP almost kept pace with JPY strength, with GBP/USD gaining 30 pips to 1.2625. EUR/USD and AUD/USD were little changed, while USD/CAD dropped 10 pips to 1.3630. The NOK also managed some gains, with EUR/NOK dropping 4 figures to 11.64.
EUR/SEK started the session slightly firmer after slightly weaker than expected Swedish April CPI data, which saw CPI drop to 3.9% y/y against a market consensus of 4.0%, with the core also slightly softer than expected at 2.3% y/y. EUR/SEK traded close to 11.70 but dropped back to 11.68 by the end of the session. Eurozone GDP and employment data for Q1 were both as expected, rising 0.3% q/q.
Asia session
Bloomberg reported that the Chinese government is considering buying unsold homes to ease oversupply. While the plan is in in early stage, the idea that "National Team" will be coming in to scoop the oversupply in housing is good enough to support sentiment. The Australia Q1 Wage Price Index came in slightly lower than estimate at 0.8% q/q and 4.1% y/y but it is not far from the 4-4.2% forecast from the RBA and Australian government. AUD/USD is trading 0.24% higher at 0.6643, NZD/USD also 0.25% higher at 0.6056 while USD/CAD slipped 0.04% as oil up ten cents.
Apart from the Antipodeans, major FX are rather muted. USD/JPY is down 4 pips at 156.35 with 10yr JGB yields continue to challenge 1% and U.S. Treasury Yields performing individually. EUR/USD is up 0.02% and GBP/USD up 0.01% as most market participants patiently waits for U.S. CPI.