Europe Summary and Highlights 6 Aug
Still tight ranging waiting for the next news
SEK a fraction firmer after CPI, more focused on risk
Copper nudges new highs further after DRC move
Europe
FX remains in a wait and see mode, action largely within a ¼ % range today. Still waiting on the Iran deal story to play out, and then payrolls.
Swedish flash Jul CPIF comes in stronger than expected at 0.8% and mkt of 0.6%, above 0.5% Riksbank expectations, though still down from 1.3%y/y. Core (ex energy) 0.6% from 0.4% (mkt 0.3%), but still low. SEK a touch firmer, if more eying broader risk and oil.
CHF marginally underperforming on day, interesting to see if that trend continues (re: carry switching)
DRC announces the ban on exports of copper and cobalt concentrates, with 3month transition, as part of its efforts to onshore processing to increase value capture, as well as tax revenues. Copper future gains around 1 ½ %.
Oil prices pretty steady, waiting for the next move just below $80, equities narrowly mixed.
Asia Session
The Australian June trade balance is a beat at AUD 1.929bn. Export is a strong beat at 9.6% while import misses at -0.9% m/m. Broader risk sentiment isn't upbeat but precious metal is partially supporting the Aussie. AUD/USD is trading 0.2% lower at 0.7043, NZD/USD is trading 0.17% lower while USD/CAD is unchanged.
USD/JPY is seeing little movement with joint intervention's threat still looming. LDP lawmaker floats BOJ ETF sales to fund Japan tax cut and could undermine Japanese equities if turned into reality. USD/JPY is trading 0.03% higher at 157.79. Else, EUR/USD and GBP/USD are down 0.06%.