Europe Summary and Highlights 24 September
EUR/JPY gained ground through the European morning, with both EUR/USD and USD/JPY moving higher, each gaining around 20 pips although the gains were larger earlier in the session.
European morning session
EUR/JPY gained ground through the European morning, with both EUR/USD and USD/JPY moving higher, each gaining around 20 pips although the gains were larger earlier in the session. EUR/JPY was consequently up around 60 pips to 160.80 on the session. EUR/CHF was also higher, rising 30 pips to 0.9450.
The main news during the session was the German IFO survey, which was weaker than the surveyed consensus but broadly in line with market expectations after the weaker than expected PMI data on Monday. But sentiment was also influenced by developments in Asia, with the Chinese policy easing and the dovish tone in the speech by Ueda in late Asia helping risk sentiment. European equities were up 1% or more on the session.
Asia session
The RBA has left cash rate unchanged at 4.35% as expected due to the current inflationary picture remaining above RBA's target range. RBA is waiting for the CPI to go lower before easing where we expect will be around the upperband of target range by year end 2024. AUD/USD is trading 0.38% higher at 0.6863, along with strong gains in the regional equity indexes in China and Hong Kong, both up more than 3% as China announced more stimulus. NZD/USD also 0.21% higher at 0.6279 while USD/CAD slipped 0.22% as oil gains half a dollar.
The U.S. Treasury Yields are nonperforming individually across the curve while JGB yields lower. USD/JPY is trading 0.28% higher as the risk mood is broadly upbeat. Else, EUR/USD is up 0.07% and GBP/USD is up 0.13%.