Europe Summary and Highlights 22 July
The USD was generally softer through the European morning, with the JPY leading the way once again.
European morning session
The USD was generally softer through the European morning, with the JPY leading the way once again. USD/JPY dropped 35 pips to 147.45, while EUR/USD gained 15 pips to 1.17. Scandis traded a little soft against the EUR and were little changed against the USD, and AUD was also little changed while USD/CAD was marginally lower.
GBP initially fell back a little after data showed larger than expected UK June public sector net borrowing at GBP20.68bn. While this followed two months of better than expected data, it underlined the likelihood of new revenue raising measures being announced in the autumn budget. However, after an initial rise EUR/GBP returned to opening levels near 0.8670.
Asia session
It is relative quiet session for the FX market on Tuesday's Asia session. U.S. three major equity indexes are in the red while regional equities in China and Hong Kong are outperforming Japan. CNBC reported that a limited trade deal between the US and India is likely ruled out before 1 August. USD/JPY is trading 0.17% higher at 147.63 as JGB yields underperform U.S. Treasury yields.
The July RBA minutes have suggested more rate cut incoming but warrant caution on inflationary and global uncertainty. It came at no surprise to us as inflationary pressure have shown further moderation in the past months. AUD/USD is trading 0.12% lower at 0.6516, NZD/USD is trading 0.17% lower at 0.5957 while USD/CAD rise 0.05%. Else, EUR/USD is unchanged and GBP/USD down 0.11%.