Europe Summary and Highlights 7 May
The USD made modest gains through the European morning, rising around 0.1% against the JPY, GBP, CAD and AUD, but was little changed against the EUR and CHF.
European morning session
The USD made modest gains through the European morning, rising around 0.1% against the JPY, GBP, CAD and AUD, but was little changed against the EUR and CHF. EUR/SEK moved a couple of figures higher after Swedish provisional April CPI came in weaker than expected at 2.3% y/y for the targeted CPIF measure. Otherwise, the EUR found some support from the stronger than expected German factory orders data, which showed a 3.6% gain in March against a market consensus of 1.4%, but the data is volatile and the underlying trend remains flat at best.
Asian session
Two important macro headlines we have on Wednesday. The first one is India launching missiles into Pakistan to target alleged terrorist camp, it is a response for the terrorist attack two weeks ago. It further escaltes geopolitical tension between two nuclear nation. Secondly, we have headlines crossing the wire that U.S. and China will be talking in Geneva this weekend officially. This seems to be supporting the broad risk sentiment. USD/JPY is trading 0.53% higher at 143.16 despite JGB outperforms U.S. Treasury yield.
The PBoC has cut rates across policy, RRR and reverse repo rate. Regional equities are strongly supported but partial opening gains in the Chinese equity indexes are retraced while U.S. three major equity indexes are almsot up by a percent. AUD/USD has reached a session high of 0.6515 before giving it all back to trade 0.14% lower at 0.6485, NZD/USD also 0.08% lower at 0.6002 while USD/CAD is up 0.11%. Else, EUR/USD is down 0.09% and GBP/USD is down 0.11%..