Europe Summary and Highlights 22 April

European morning session

The USD recovered a little through the European morning. EUR/USD dropped half a figure to trade sub 1.15, while USD/JPY also gained half a figure to 140.45. Crosses were relatively stable but the AUD underperformed slightly while scandis were a little stronger.

Datawise Swedish unemployment showed a sharp fall in March to 8.1% seasonally adjusted, completing the reversal of the sharp rise seen in January, but otherwise there was little of note.

Asia session

USD/JPY is retesting Monday's low and quickly approaching the 140 figure. We heard from Japanese ministers on their take towards trade deal, suggesting less compromise from the Japanese side while the FM is going to meet with U.S. Treasury Secretary Bessent to talk about FX. It seems to be weighing on JPY as a coloration of FX intervention could push the JPY significantly higher, though it is unlikely for now. USD/JPY is trading 0.5% at 140.15 while U.S. Treasury and JGB Yields both higher but the later erased most opening gains.

The broad risk asset market remains choppy after returning from Easter. Major equity indexes are trading higher than session low with U.S. equities in the green. Gold price reached another high on geopolitical tension and the falling USD.  AUD/USD is up 0.29% to 0.6435, NZD/USD is up 0.38% to 0.6023 while USD/CAD slips 0.26%. Else, EUR/USD  and GBP/USD are up 0.21%.