Europe Summary and Highlights 6 May
USD modestly weaker through European morning as oil drops and equities gain
European morning session
The USD was generally a little weaker through the European morning, with EUR/USD gaining around 40 pips to 1.1770, and most other European currencies seeing similar gains. The NOK was an exception, with EUR/NOK rising 9 figures to 10.91, and USD/NOK up 6 figures to 9.28, reflecting a drop in the oil price of around 8% due to optimism over a US/Iran deal. The SEK was also weaker, with EUR/SEK up 4 figures to 10.84.
USD/JPY was relatively stable following the volatility in late Asia after the supposed BoJ intervention, holding close to 156 for most of the session. Equites were generally much stronger, helped by the lower oil price and the better sentiment around the Middle East.
Asia session
The antipodeans are having their day as market participants cheer ahead of potential "great progress". Both equities and precious metals are higher, supporting the antipodeans strongly. Australia is reported to be building Aussie 10bn fuel reserve as Middle East crisis drives stockpile push, an act for future cushion of energy shock. AUD/USD is trading 0.86% higher at 0.7244. NZD/USD is trading 1.04% higher while USD/CAD slips 0.23% with both Brent and WTI lower.
The USD/JPY dropped a figure in mins again. It looks like another intervention attempt from the MoF as such move is typical related. The Japanese FMs did already warned us of more intervention beforehand but there seems to be a change in magnitude. In previous intervention attempt, the MoF usually beat down the pair by around five figures. So far, we are only seeing a drop of around 2 figures in the past hour. USD/JPY is trading 1.68% lower at 155.22. Else, EUR/USD is up 0.37% and GBP/USD 0.38%.