Europe Summary and Highlights 25 Jun
Consolidation after recent fast dollar action
Oil fully back to pre-Iran, equities bolstered by earnings
European morning session
Stretched action in recent sessions seeing a spell of consolidation, with EUR/USD finding some basing at present back above the recouped 1.1350~ mark that saw a fast loss and regain yesterday. USD/JPY still parked around the highs at 161.80~
Oil continues to slip, fully closing the pre-Iran gap, Brent front month off just over $1. USD/NOK manages a higher high by just a few ticks.
Just some background colour of note there, Reuters has Iraq sources saying compelled to consider all options on OPEC if doesn’t get a significant quota increase.
Equities firmer and Nasdaq future +2%, following positive earnings and guidance from Micron as well as Qualcomm, both flagging strong customer order books.
Asia Session
The Australian May Employment report shows a rebound from a disappointing April. Both Headline employment change and unemployment improved while participation rate steady. However, most of the gains come from part time rather than full time position, taking aways some shine from the report. AUD/USD is trading 0.03% lower at 0.6899. NZD/USD is trading 0.07% lower while USD/CAD is unchanged on oil.
Despite well known hawk Tamura suggest neutral rate to be far above expectation, the JPY failed to gain traction. BoJ's Tamura should be the most hawkish member within the board and his call is not unexpected given the traction in wage growth. Yet, the political obstacle remain robust for more rate hikes, let alone to 2%. USD/JPY is trading unchanged at 161.76. Else, EUR/USD is up 0.06% and GBP/USD is up 0.08%.