Europe Summary and Highlights 10 Aug
USD/JPY clear last week's high, building off recent basing, slight extra pop
NOK off a touch after lower core CPI
Europe
Extension of the overnight moves with USD/JPY and yen crosses still attempting to correct higher and backfill on the recent post intervention basing out. Slight extra pop as USD/JPY clears the Thu-Fri highs, extends another 25 pips. Technical driven trade with oversold lift towards 159~ being attempted.
Otherwise, relatively quiet for news. Still waiting on Iran deal news, but with Iran still looking to muscle on maximum US concessions.
Norway Jul CPI data comes in a bit higher on the headline, at 3% from 2.7% (mkt 2.8%) but a little softer on the core, flat at 2.7% vs 2.8% market and below Norges’ expectations. Latter helps NOK a touch softer but main focus still on oil and risk backdrop.
EZ July Sentix index into positive at 0.9 vs -0.5 mkt and -3.1 previous.
Asia Session
While the BOJ July meeting Summary shows board split on pace of hikes, the JPY is seeing little support as it is not what we do not already know. Moreover, USD is casually receiving their haven bids over the weekend geopolitics. The upbeat regional equities are also seeing little need for the JPY. USD/JPY is trading 0.37% higher at 158.35.
The weekend news are hardly positive for risk asset as it indicates no deal in the horizon. Major equity indexes are still hopeful that the lack of escalation in military action but reality is nothing has changed. The party is unlikely to go on forever and the music can stop anytime. AUD/USD is trading 0.09% lower at 0.7062. NZD/USD is trading 0.11% while USD/CAD rises 0.16%. Oil gap higher and remain more than a USD/b higher. Else, EUR/USD and GBP/USD are trading 0.03% lower.