Europe Summary and Highlights 3 June
EUR/USD dropped 10 pips and USD/JPY 15 pips in a fairly quiet European morning.
EUR/USD dropped 10 pips and USD/JPY 15 pips in a fairly quiet European morning. The main news was the Eurozone CPI data, which came in weaker than expected at 1.9% y/y, below the consensus expectation of 2.0%, the first time below the 2.0% target since September 2024. The data triggered a modest EUR decline, while USD/JPY had dipped earlier in the session as equities had started the session softer.
Earlier in the session Swiss CPI was in line with consensus at -0.1% y/y. EUR/CHF was little changed as was EUR/GBP. Commodity currencies were also steady, while scandis edged slightly lower against the EUR.
Asia session
The RBA's May minutes has captured some eyeballs and Aussie offers as it officially shows the consideration of more easing from the RBA. It is also reported by Reuters that Australia will raise its minimum wage by 3.5% but shorter than union expectation of more than 4%. Yet, the last straw for Aussie is the contracting CAIXIN manufacturing PMI at 48.3, a level last seen in 2022. AUD/USD is down 0.5% to 0.6465, NZD/USD is also down 0.44% to 0.6010 while USD/CAD rise 0.15%. Regional equities are outperforming U.S. major equities even with Chinese equities that retreated from session high.
BoJ's Governor Ueda hinted there will be no imminent hike by raising concern on real wage growth. While he is still tilted towards more tightening, there seems to be little commitment when the U.S.-Japan trade conflict persist. USD/JPY is trading 0.21% higher at 142.96 as JGB yields took a nose dive. Else, both the EUR/USD and GBP/USD are down 0.21%.