Europe Summary and Highlights 28 Aug
Markets tread water ahead of Warsh speech
Europe
All quiet this morning as the market waits on Warsh’s comments, the dollar having very fractional support prior, with some assumption he will at least superficially sound hawkish or inflation-committed. Perhaps more interesting, comments yesterday in the run up from other Fed speakers were all generally quite hawkish, albeit from the hawkish contingent.
French flash harmonised CPI 2.7% from 2.4%, rebounding on energy prices. Spanish HICP up to 4.5% from 3.9% if short of mkt at 4.6%.
EZ Aug economic sentiment 98.4 from 97.1 (mkt 97.5).
Asia Session
Tokyo August Ex fresh food & energy CPI rose from 1.8% y/y in July to 2%, while headline CPI below target range at 1.9% y/y. The figure is still cushioned by energy stimulus yet remain supportive for a September hike on a strong read in core-core. USD/JPY is trading 0.09% higher at 159.54.
Broader risk asset is undecided on Friday as the market lack a push from the Middle East or the Fed. The Middle East side is expected to quiet down with market focus return to the Fed. AUD/USD is trading unchanged. NZD/USD is trading 0.14% higher while USD/CAD slips 0.03%. Else, EUR/USD is down 0.04% and GBP/USD is down 0.06%.