Europe Summary and Highlights 25 June
The USD was firmer through the European morning, primarily against the JPY, with USD/JPY rising 50 pips to 145.65.
The USD was firmer through the European morning, primarily against the JPY, with USD/JPY rising 50 pips to 145.65. Elsewhere, the USD’s gains were more modest, with EUR/USD and GBP/USD both down around 15 pips, while AUD and CAD were not much changed. NOK/SEK continues to edge lower.
News was thin on the ground, with little data of note. Spanish Q1 GDP was unrevised at 0.6%. Equities were modestly weaker and yields slightly firmer.
Asia session
The monthly CPI for Australia dropped to 2.1% y/y, very close to the lower target band of RBA’s inflation target. What is more important is the fall of trimmed mean CPI past mid point of target range to 2.4% y/y, making sense of the previous cut from the RBA. AUD/USD is trading 0.2% higher at 0.6502, NZD/USD is trading 0.32% higher at 0.6026 while USD/CAD rise 0.03%.
BoJ's Tamura came out hawkish after the BoJ summary of opinion proven little cues. He warns decisive rate hike may be needed if inflation risks rise, even amid uncertainty from U.S. tariffs and inflation is tracking slightly above forecasts and may hit the 2% target earlier than expected. However, he finished with not thinking the BoJ need an imminent rate hike. USD/JPY is trading 0.11% higher at 145.04 with JGB yields falling faster than U.S. Treasury yields. Else, EUR/USD is up 0.06% and GBP/USD is up 0.07%.