Europe Summary and Highlights 7 November
The USD moved slightly lower through a quiet European morning session.
European morning session
The USD moved slightly lower through a quiet European morning session. The EUR and SEK were the best performers, with the EUR gaining 20 pips against the USD to 1.1550 and the SEK kept pace. GBP underperformed, as GBP/USD slipped 10 pips lower to 1.3105, even though UK yields were generally a little higher. USD/JPY, USD/CHF and USD/CAD all lost around 0.1%, while AUD/USD was little changed.
Datawise there was little of note. French and German trade data both showed stronger than expected imports leading to a smaller German surplus and a larger French deficit than expected.
Asia session
The September Japanese household spending continue to expand at +1.8% y/y. However, month to month data is showing a contraction of 0.7%. Private consumption continues to be dragged by negative real wage and would unlikely to be upbeat. USD/JPY is trading 0.11% higher at 153.23 with U.S. Treasury outperform JGB yields.
The broad risk sentiment remain weak and headlines like U.S. blocks Nvidia’s scaled-down AI chip sales to China definitely do not help. Despite Trump previously hints relaxation of chips export, it seems he had not received enough concession from China to allow that to happen. Major equity indexes are all in the red with Nikkei and HSI leading losses of more than a percent. AUD/USD is trading unchanged 0.6479, NZD/USD is trading 0.23% lower while USD/CAD rises 0.04%. Else, EUR/USD is down 0.09% and GBP/USD is down 0.14%.