Europe Summary and Highlights 28 November
The USD was mixed through the European morning, rising against the JPY but falling back against the commodity currencies, with most European currencies not much changed.
European morning session
The USD was mixed through the European morning, rising against the JPY but falling back against the commodity currencies, with most European currencies not much changed. USD/JPY gained 20 pips to 151.80, but AUD/USD rose 20 pips to 0.6505 and USD/CAD fell back 25 pips to trade below 1.40 for the first time since Trump’s tariff statement.
Datawise German state CPI data was slightly on the weak side of expectations. While most states showed a rise in the y/y rate in November, the largest state, NRW, saw y/y CPI fall to 1.9% from 2.0%. National CPI looks likely to rise less than expected. Earlier, Spanish CPI was broadly in line with consensus at 2.4% y/y on an HICP basis.
The European Commission survey was mixed, showing a rise in industrial sentiment but a fall in services sentiment, but the main business and consumer survey showed a modest rise.
Asia session
The USD/JPY took a breather from its recent correction as it almost jumped a figure from session low to high in early Asia. There has been little headlines but the fall in JGB yields seem to be the culprit. USD/JPY jumped to 151.74 before retracing to 151.61 currently, still up 0.38% for the session.
Regional sentiment on Thursday are on the soft end while Nikkei and U.S. three major equities are in the green. The Australian government has passed a law to overhaul the RBA but the reform does not seem to affect the way monetary policy to be decided. AUD/USD is down 0.1% to 0.6491, NZD/USD is down 0.02% to 0.5894 while USD/CAD slipped 0.03%. Else, EUR/USD and GBP/USD are down 0.09%