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Published: 2024-04-16T10:46:40.000Z

European Summary and Highlights 16 Apr

byAdrian Schmidt

Senior FX Strategist
-

EUR/USD and USD/JPY were both firmer through the European morning, both gaining around 20 pips.

European morning session

EUR/USD and USD/JPY were both firmer through the European morning, both gaining around 20 pips. GBP kept pace with EUR gains, but commodity currencies were unchanged against the USD and the EUR gained almost 0.5% against the scandis while EUR/CHF also edged higher, breaking back above 0.97.

UK labour market data was the main data release, and was mixed, with the employment data showing some weakness but average earnings growth coming in marginally above market expectations. EUR/GBP initially rise slightly but finished the session little changed. 

The German ZEW survey came in stronger than expected, hitting its highest level for economic sentiment since February 2022, although current conditions remained near the lows.

Asia session

While Japanese cabinet's Suzuki and Hayashi both seems to have escalated their rhetoric against the JPY weakness, the broad USD strength seems to be in the driver seat. No doubt the pace of JPY weakness has been rapid and we are getting closer and closer to the intervention zone, the language Japanese officials have not been tough and seems to be unable to discourage further offer of JPY.  With JGB yields turning higher than the U.S. counterpart, the turn in USD/JPY could be swift but in this Asia session we are seeing USD/JPY to trade 0.04% higher at 154.31.

Risk sentiment is broadly weaker with major Chinese, Hong Kong and Japan equity indexes all deep in red and U.S. 3 major equity indexes could not catch a break from the overnight fall. Geopolitical tension remains the spotlight in the market as participants awaits Israel's potential response towards Iran's strike. While the market is somewhat calmer with the U.S. and Iran signaled no intention to a full blown war, the ball will be in Israel's court as Iran public stated they will return fire if Israel retaliates and thus escalating the tension in the area.  AUD/USD is trading 0.28% lower at 0.6424, NZD/USD also 0.22% lower at 0.5890 while USD/CAD rose 0.06% to 1.3795. Else, EUR/USD is down 0.08% and GBP/USD is down 0.09%.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Topics
FX Highlights
Foreign Exchange
European Midday

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