Europe Summary and Highlights 30 October
Divgerence in Europe on Wednesday.
European morning session
The USD and GBP were softer through the European morning, while the EUR, JPY and AUD gained ground. EUR/USD rose around 20 pips to 1.0840, touching a high at 1.0860, helped by stronger than expected GDP data from the Eurozone. This showed a rise of 0.4% in Q3 against a market consensus of 0.2%. Additionally, German October state CPIs generally came in well above expectations, with Spanish CPI also on the firm side. The result was a significant rise in front end EUR yields. The EUR also gained ground against the CHF, reaching 0.94.
USD/JPY fell back 40 pips while the AUD was the best performer, gaining 35 pips or more than 0.5% on the morning. GBP was weak, with EUR/GBP gaining 30 pips to 0.8350 ahead of the UK budget statement due later. The SEK continued to soften, with EUR/SEK rising around 3 figures to 11.5450.