Europe Summary and Highlights 9 October

European morning session

A very quiet European morning saw marginal gains for USD/JPY which rose 10 pips to 148.65, and small losses for EUR/CHF, which lost 15 pips to 0.9395. Scandis were also slightly softer but in general the markets were very quiet. EUR/USD was steady near 1.0965. Yields were generally slightly lower across the board while equities were marginally firmer.

German trade data showed a larger than expected surplus of EUR22.5bn in August, due both to stronger than expected exports and weaker than expected imports, but there was no other data of note.

Asian session

The RBNZ cuts cash rate by 50bp as expected to 4.75%, citing "lower import prices have assisted disinflation". It is previewed in their previous OCR forecast and is well supported by inflationary dynamics. NZD/USD is trading 0.68% lower at 0.6096. The correction in Chinese equities continues with bulls disappointed by the lack of extra stimulus. Chinese equity indexes was down more than 5% with HSI 1% lower in early Asia session. As the session progress, such losses are partially recovered with the HSI back in the green with a 2% gain AUD/USD is trading unchanged at 0.6746, while USD/CAD is up 0.05%.

USD is trading broadly higher against majors on Wednesday's Asia session. U.S. Treasury yields are performing individually while JGB yields are higher. USD/JPY is trading 0.22% higher at 148.51. Else, EUR/USD and GBP/USD are down 0.09%.