Europe Summary and Highlights 14 Sep
Risk weighed by energy concerns and AI related setbacks - OpenAI delay and development slowdown
EUR/USD caught a bit offside and pulled back from 1.16+ to 1.550-
USD/JPY test bounce supply, risk/USD (SEK, NZD...) sees sharper moves
Europe
A negative risk slant to start the week, tending to bolster the dollar across the board, especially into the FOMC. Energy prices still feeling upward pressure, albeit with Brent currently shy of last week’s highs, given the widening disruption concerns from Saudi’s pipeline to Bab el-Mandeb Strait.
AI exposed/investor stocks also weighed by labs agreeing to slow development and with OpenAI delaying its IPO from this year. Nasdaq off almost 2% following pressure in Asia tech stocks overnight.
EUR/USD caught a little offside on the trading side out of last week, and resetting from 1.16 to 1.1650 and below, skewing back now to the lower 1.16 support focus in the wider range. USD/JPY re-testing last week’s bounce resistance. Risk/USD (NZD, SEK…) weighed further.
Asia Session
Broader risk sentiment is sour on geopolitics. Over the weekend, there is more harassment in the Strait, concern on Saudi’s pipeline also worsens. Major equity indexes are performing individually but are tilted south. AUD/USD is trading 0.29% lower at 0.7149. NZD/USD is trading 0.51% while USD/CAD is unchanged.
Government Treasuries are performing individually with magnitude being consolidated for now. USD/JPY touched the 154 figure by 0.34%. Else, EUR /USD is down 0.27% and GBP/USD is down 0.18%.