Europe Summary and Highlights 18 September
EUR/USD gained around 20 pips through the European morning, while GBP/USD was the best performer, rising 60 pips to 1.3220 after UK CPI data came in essentially in line with expectations at 2.2% y/y.
European morning session
EUR/USD gained around 20 pips through the European morning, while GBP/USD was the best performer, rising 60 pips to 1.3220 after UK CPI data came in essentially in line with expectations at 2.2% y/y. 3.6% core, but triggered general GBP gains, with EUR/GBP down 30 pips to 0.8420. AUD/USD also made gains to 0.6785 from an open at 0.6760.
Otherwise Swedish unemployment data showed a modest rise to 8.4% on a smoothed, seasonally adjusted basis, triggering a small rise in EUR/SEK in early trade, but EUR/SEK finished the session little changed at 11.32. EUR/CHF moved slightly lower to 0.9385 from 0.94.
Asia Session
The Japan August trade data has missed estimate from both ends. Export came in lower at 5.6% y/y with import showing more sluggish growth at 2.3% y/y against expectation of double digit growth. It seems to suggest Japanese growth in the third quarter will continue to be hindered by soft private consumption. USD/JPY stay pressured in Asia. The gains on Tuesday have been halved as U.S. Treasury Yield falls while JGB yields close to unchanged. USD/JPY is trading at 141.27, 0.78% lower.
The risk mood was broadly positive on Wednesday's Asia session before turning sour by Asia noon. The regional equity indexes are in the red while U.S. major equity indexes are in the green. The Aussie erased earlier gains to trade 0.06% lower at 0.6751 after reaching a session high of 0.6774, NZD/USD kept partial gains of 0.2% to trade higher at 0.6196 while USD/CAD slips 0.04%. Else, EUR/USD is up 0.06% and GBP/USD is unchanged.