Europe Summary and Highlights 4 Sep
Waiting for payrolls for next steer into the weekend
Otherwise some corrective bounce from USD/JPY on the fast run down towards 155
And EUR/USD holds near to 1.16 expiries into the data
Europe
Consolidation and a bit of backfilling into US payrolls. USD/JPY back to the lower-mid 156’s having bounced from the fast run towards 155 yesterday. EUR/USD also pretty close to the 1.16~ pivot that has held all week, and with large expiries today centred on the figure.
Oil, equities, also all fairly flat on the morning session. All in all, a waiting session with data, starting with payrolls today but then more crucially CPI next week, now seen more pivotal for the Sep FOMC
Asia Session
After two days of sharp drop, USD/JPY has recovered partially in Friday's Asia session. Market is patiently waiting for U.S. NFP in the later U.S. session, which potentially led to JPY longs taking profit for now. JGB yields are lower across the curve. However, looking into the detail, we had the worst in years overall household spending of -3.6% y/y in July. The BoJ is not going to like it. USD/JPY is trading 0.33% higher at 156.33.
The broader risk sentiment is upbeat on Friday with major equity indexes all in the green. led by regional equities. Commodities are slightly lower for the session so far. The AUD/USD broke 0.7190 technical zone to trade 0.11% higher at 0.7208. NZD/USD is also trading 0.3% higher while USD/CAD slips 0.03%. Else, EUR/USD is up 0.02% and GBP/USD is up 0.08%.