Europe Summary and Highlights 8 August
The USD was mixed through the European morning.
European morning session
The USD was mixed through the European morning. USD/JPY gained 25 pips to trade above 147.60, but GBP and CAD were both firmer, with GBP/USD gaining 20 pips to 1.3450 and USD/CAD 20 pips lower at 1.3730. EUR/USD and AUD/USD were not much changed.
There was little news of significance, with the market awaiting the Canadian employment report later and GBP still reacting to the more hawkish than expected BoE decision on Thursday.
Asia session
Japanese trade envoy Akazawa said that he has made progress in U.S.-Japan trade as it seems now all rates are capped by 15%. It is mentioned that the U.S. has agreed to correct the presidential order of excessive tariff and will be refunding the excess. With everything capped by 15% it is a brighter picture than the report earlier in the week and see Japanese equities cheer on that. USD/JPY is trading 0.05% higher at 147.18.
It is reported that Prime Minister Netanyahu’s proposal for the occupation of Gaza City approved by their security cabinet. There were also signs of Israeli troops massing near Gaza. While these reports are yet to be confirmed, it could spark fear of the reignition of geopolitical tension. U.S. three major equity indexes are in the green while regional equities are performing individually. The AUD/USD is trading 0.05% lower at 0.6622, NZD/USD is trading 0.04% lower at 0.5958 while USD/CAD slips 0.05%. On later Thursday, we have reports that Trump will be targeting physical gold for latest round of tariffs and see a squeeze higher. Else, EUR/USD is down 0.05% and GBP/USD is down 0.07%.