Europe Summary and Highlights 14 Aug

Europe 

Another summer-holiday morning though the dollar has leaked out moderately across the board. Some of this is Friday weekly-correction-driven in combination with technicals - USD/JPY for instance rolling back from 159 ½ ~ retracement level to trim back the 2-yen weekly gain.

Reuters sources echoed Jiji earlier in the week in suggesting focus on an earlier Sep hike (now majority priced in, in fact) and potential to pick up the pace. Bounce to date has also taken pair to less positive risk-reward zone, into 160+.

Cable also stays firm with the low-vol, risk-supportive mood, sitting off the recent highs and ahead of 1.36~ resistance. USD/CAD (along with risk-FX/dollar and commodity-FX/dollar in general) also extends the pullback, picking up a bit more on the slip below 1.39 with 1.38 below that – some of the backdrop to that discussed also (here) for instance.

EUR/USD finds 1.15~ as holding solid for support this week and lifts back to 1.1550 recent half point or so range highs. NZD further recovers as AUD/NZD rolls further back from the 1.21~ Aug to date resistance test yesterday. 

Asia Session

The FX market is rangebound on Friday. There isn't much headlines circulating, apart from Russian drones alert in Latvia and Finland, and market participants are likely avoiding fresh bet before the weekend. USD is trading slightly stronger.  Short end JGB yields remain close to recent high and longer end are likely going to retest higher grounds too. USD/JPY is trading 0.10% lower at 159.33.

Looks like a quiet Friday so far as FX rangebound and major regional equity indexes ending the Asia session way from session high. Precious metals are also trading lower with oil little changed. AUD/USD is trading 0.04% higher at 0.7062. NZD/USD is trading 0.26% higher while USD/CAD slides 0.11%. Else, EUR/USD is up 0.1% and GBP/USD is down 0.08%.