Europe Summary and Highlights 30 October

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.