Europe Summary and Highlights 13 February

European morning session

The EUR and most of the other risky currencies edged lower against the USD through the European morning, with the exception being GBP, which held its own. EUR/USD fell around 15 pips to 1.0415, AUD/USD fell 20 pips to 0.6270 and USD/CAD rise 30 pips to 1.4290.

GBP/USD was net unchanged just below 1.25 with GBP benefiting from stronger than expected UK Q4 GDP data, which showed a 0.1% q/q gain against market expectations of a 0.1% decline. The GBP gans were modest partly because the data was less good than the headline suggested. GDP per capita fell 0.1%, most of the gain was in inventories, business investment fell sharply and household consumption was flat.

The CHF and the JPY were the best performers through the morning, with USD/CHF down 40 pips to 0.9070 and USD/JPY losing around 20 pips to 153.80, correcting some of Wednesdays rise. Swiss January CPI was in line with expectations at -0.1% m/m, 0.4% y/y.

Asia session

After a strong gain on U.S. CPI Wednesday, USD/JPY is taking a breather on Thursday's Asia session as market participants waiting for Trump's tariff plan. The January Japan PPI continues to edge higher but so far that has not been a good indicator of incoming inflation. Yet, it reminds market participants that the cost pressure in Japanese inflation are returning, whether transitory or not. USD/JPY is trading 0.02% higher at 154.43.

Risk sentiment seems to be improving on Thursday's Asia session. U.S. three major equity indexes have their toes in the green with HSI and Nikkei (lower than the opening high )marching north more than a percent while Chinese equities lag. Under such atmosphere, the USD is trading broadly softer. AUD/USD is up 0.16% at 0.6289, NZD/USD is up 0.26% to 0.5656 while USD/CAD slipped 0.31% to 1.4265. Else, EUR/USD is up 0.49% to 1.0433 and GBP/USD is up 0.35%.