Europe Summary and Highlights 11 October
The USD was mixed in the European morning, gaining some ground against the JPY but falling back slightly against the riskier currencies, although he USD losses were mostly reversed by the end of the morning.
European morning session
The USD was mixed in the European morning, gaining some ground against the JPY but falling back slightly against the riskier currencies, although he USD losses were mostly reversed by the end of the morning. GBP sustained its gains, rising to 1.3070 from 1.3050, but EUR/USD and AUD/USD were essentially unchanged. USD/JPY gained 20 pips to 148.90.
The main data during the morning was UK August GDP, which showed the expected 0.2% m/m gain, which was also a 0.2% gain on the last 3 months following flat numbers in June and July. The strength was concentrated in manufacturing in August, which rose 1.1%, although this followed a 1.2% decline n July. Services rose less than expected at 0.1%. The UK trade deficit came in below expectations at GBP15.06bn. EUR/GBP fell 10 pips to 0.8370.
Asian session
Slow start for the FX market on Friday's Asia session after hotter than expected CPI in the overnight New York session. The U.S. Treasury outperforms JGB yields so far in the session . USD/JPY is up 0.11% to 148.73.
Regional sentiment is heavy with Hong Kong market off for holiday, while U.S. equity indexes are more positive on balance. AUD/USD is up 0.07% at 0.6745, NZD/USD is up 0.17% to 0.6103 while USD/CAD is up 0.08%. Else, EUR/USD is unchanged and GBP/USD down 0.08%.