Europe Summary and Highlights 10 November
EUR/NOK dropped 4 figures to trade below 11.70 in the European morning, after stronger than expected October CPI data.
European morning session
EUR/NOK dropped 4 figures to trade below 11.70 in the European morning, after stronger than expected October CPI data. Headline came in at 3.3% y/y and core rose to 3.4% y/y against a market consensus of 3.0% for the core and 3.1% for the headline. Otherwise, the markets were quiet, with a modest risk positive tone. USD/JPY slightly extended overnight gains to reach a high of 154.23 before dropping back, while EUR/USD reached a high of 1.1583 but finished the session just marginally higher at 1.1560. AUD, CAD and GBP were all marginally firmer, with equity prices generally higher helped by rising expectations of an end to the US government shutdown, despite a modest fall in the Sentix investor confidence index for November.
Asia session
Over the weekend, we heard headlines from Japan on policy tilt. The Japanese PM Takaichi will be abandoning annual budget target in the next fiscal year, a key policy stance since she took office. It opens the path for her to increase spending in the next fiscal year, accompanied by remarks on sales tax changes, such echoes market anticipation of her being tilted towards higher fiscal spending. USD/JPY jumped higher in the open as JPY weakens on the headline to 152.76, 35 pips above Friday's close. The pair is currently trading 0.31% higher at 153.88.
It is reported that US Senate has approved the first vote needed to reopen government in a 60-40 vote. The house is going to vote next and is broadly assumed to be passing too, seeing the reopen of U.S. government in days. We are also hearing more thawing headlines regarding U.S.-China as China suspends special port fees on US ships and export ban on gallium, germanium and other critical metals to U.S.. The broad risk atmosphere is upbeat and see AUD/USD trading 0.49% higher at 0.6525, NZD/USD is trading 0.18% higher at 0.5636 while USD/CAD slides 0.14%. Else, EUR/USD is unchanged and GBP/USD is down 0.08%. Major currency pairs opened with independent gap but were all closed at one point in the session.