Europe Summary and Highlights 28 November
Then EUR was weaker across the board through the European morning.
European morning session
Then EUR was weaker across the board through the European morning. EUR/USD fell back 25 pips to 1.1560, while the USD was otherwise not much changed against most currencies, although the CHF and SEK fell with the EUR, and GBP/USD was dragged 10 pips lower.
European data through the morning was much as expected, with preliminary November Spanish CPI on the strong side, French CPI on the weak side and German state CPI much as expected. Revised Q3 GDP data saw no change in France and Sweden from the preliminary numbers, but Italy was revised slightly higher and Switzerland slightly lower. German retail sales were a little weaker than expected, falling 0.3% in October.
Asia session
Headline Tokyo CPI landed at 2.7% y/y for November. It is unchanged with the figure in October and remain above BoJ's inflation target. The inflationary picture is showing little moderation into the year end and could persuade the BoJ to hike in December. USD/JPY is trading 0.01% higher at 156.30 with both U.S. Treasury and JGB yields higher.
It is reported that Chinese property developer Vanke has sought for a delay of payment for its onshore bond. It is the first time for Vanke to seek a delay and shakes market as Vanke has been on the conservative side of leveraging. Market confidence further deteriorate when S&P cut Vanke to CCC- grade and flags deepening distress. AUD/USD is trading 0.12% lower at 0.6526, NZD/USD is trading 0.23% lower at 0.5716 while USD/CAD rises 0.03%. Else, EUR/USD is down 0.07% and GBP/USD is down 0.04%.