Europe Summary and Highlights 12 November
USD/JPY continued to advance through the European morning, making another new post February high at 154.91, with EUR/JPY making another new all time high at 179.30.
European morning session
USD/JPY continued to advance through the European morning, making another new post February high at 154.91, with EUR/JPY making another new all time high at 179.30. The USD was slightly firmer across the board, with EUR/USD down 15 pips to 1.1570 with similar gains in most other pairs, but the CHF was notably stronger, with EUR/CHF falling 20 pips to 0.9250, reflecting hopes of an imminent trade deal with the US after Trump said on Monday that he was considering reducing tariffs on Swiss goods.
GBP saw an initial decline, helped by talk of am leadership challenge to PM Starmer. EUR/GBP reached a high of 0.8826 before falling back, with UK gilt yields generally higher. SEK also performed well, with EUR/SEK down 2 figures to 10.93 helped by a lower Swedish unemployment rate for October at 6.8%.
Asia session
USD/JPY remains elevated after multiple rounds of verbal intervention since the beginning of the month. After an undecided Tuesday, we are seeing the pair quickly broke monthly high on Wednesday's Asia session. Both the U.S. Treasury and JGB yields are lower in the far end. USD/JPY is trading 0.33% higher at 154.64.
Comments from RBA Deputy Governor Hauser reinforces market expectation of slow rate cut. China continues to play around export control and is reported to restrict U.S. military access with new rare-earth export system. U.S. major equity indexes looks good while regional equities are choppy. AUD/USD is trading 0.04% lower at 0.6524, NZD/USD is trading 0.08% while USD/CAD slips 0.05%. Else, EUR/USD is down 0.04% and GBP/USD is down 0.1%.