Europe Summary and Highlights 23 April
The EUR was generally firmer through the European morning.
European morning session
The EUR was generally firmer through the European morning. EUR/USD rose 40 pips to 1.1420, and the EUR also gained ground on the crosses. EUR/JPY gained half a figure to 162.10 and the EUR was up 0.1-0.2% on the European crosses and against the CAD, while AUD kept pace with EUR gains.
PMI data provided the man news. The Eurozone composite PMI fell to 50.1 in April, slightly below consensus due to weakness in services, but manufacturing was marginally higher on the month, despite France and Germany both showing small declines. UK composite PMI was much weaker, dropping to 48.9 from 52.5, again due to weakness in services, although the UK manufacturing index also fell. EUR/USD found some encouragement from the data as it was perhaps less weak than the market feared.
Asian session
In early Asia, we have some "kind" words from Trump and see the risk market went euphoric. U.S. major equity indexes are jumping at the reopening bell and remained in the green as session progress. USD/JPY once shot to 143.21 before retracing most gains to trade 0.25% to 141.93 with U.S> Treasury Yields sliding across the curve and JGB yields erasing opening gains.
The broad risk asset sentiment is upbeat on Wednesday as market participants cheers on Trump's positive remark. There is nothing of material so far and we have not heard any response from China. U.S major equity indexes are little changed from the opening gap while regional equities perform individually yet stays in the green. AUD/USD is trading 0.43% higher at 0.6392, NZD/USD is up 0.28% to 0.5981 while USD/CAD is up 0.15%. Else, EUR/USD is down 0.22% and GBP/USD is down 0.16%.