Europe Summary and Highlights 18 March
The USD was mostly weaker through the European morning.
European morning session
The USD was mostly weaker through the European morning. EUR/USD gained 20 pips to 1.0930, although it reached a high of 1.0955 mid-session, its highest since October, and USD/JPY lost 20 pips to 149.60. GBP/USD was also slightly firmer although EUR/GBP edged higher, but commodity currencies were little changed against the USD. Scandis were the best performers, gaining slightly against the EUR, while EUR/CHF was unchanged.
The German ZEW survey showed a slightly improvement in the expectations index but a decline in the current conditions index. The annual intervention report from the SNB showed they bought foreign currency worth 1.2 billion Swiss francs ($1.36 billion) in 2024.The figure compared with 132.9 billion Swiss francs of foreign currencies sold by the SNB during 2023.
Asia session
The office of Israeli Prime Minister Benjamin Netanyahu confirming that "extensive strikes" had been launched on Gaza. It seems to be triggered by Hamas' refusal to release hostage and mediator proposal. Oil is higher and we see U.S. equity low, though the magnitude is limited for now. AUD/USD is down 0.15% to 0.6375, NZD/USD is unchanged while USD/CAD is up 0.1% as the current risk of geopolitical tension lies more in the Russia-Ukraine scene.
The rebound in USD/JPY is closing in on 150 after bottoming last week around the 146/47 figure. The optimism in risk asset remains fragile on Trump's policy and geopolitical uncertainty while U.S. Treasury yields are little changed and JGB yields higher. USD/JPY is trading 0.28% higher at 149.6. Else, EUR/USD and GBP/USD are down 0.11%.