Europe Summary and Highlights 25 November
The USD was slightly softer through the European morning, with the JPY making the biggest gains, USD/JPY falling from 156.65 to 156.40.
European morning session
The USD was slightly softer through the European morning, with the JPY making the biggest gains, USD/JPY falling from 156.65 to 156.40. EUR/USD gained 15 pips to 1.1535, and GBP kept pace with the EUR. But AUD and CAD were little changed against the USD, as were the scandis, while USD/CHF was higher, rising 10 pips to 0.81 as EUR/CHF gained 20 pips to 0.9340.
There wasn’t much news of note. German final Q3 GDP was unrevised at 0.0% q/q, while Swedish PPI rose 0.4% m/m in October. Equities we broadly flat while bond yields were marginally lower.
Asia session
The USD/JPY is in consolidation after firm words from Japan FM last Friday. The pair retreated from high of 157.89, in fear of an actual intervention from the BoJ. JPY also gained some traction from sour risk atmosphere. On Tuesday, we are seeing the pair moving lower, along broad USD weakness and red U.S. major equity indexes. Japan PM Takaichi says she spoke with Trump on a call but there is lack of detail, only mentioned they talk about U.S.-China relationship. It seems to be related to the escalated tension recently between U.S.-China. USD/JPY is trading 0.07% lower at 156.80 as JGB outperform U.S. Treasury yields.
The broader risk sentiment remains undecided with regional equities outperforming U.S. counterpart. On the geopolitical front, we are hearing Chinese President Xi says to enhance energy partnership with Russia, in response to U.S. sanctions. AUD/USD is trading 0.13% lower at 0.6456, facing some resistance after two days of rebound. NZD/USD is trading 0.21% lower while USD/CAD rises 0.1%. Else, EUR/USD is down 0.07% and GBP/USD is down 0.05%.