Europe Summary and Highlights 30 July
The USD was little changed through the European morning.
European morning session
The USD was little changed through the European morning. The EUR initially gained a boost from stronger than expected French GDP and German retail sales data, but slipped back to opening levels when Italian GDP came out below consensus and German GDP was down on the quarter as expected. Even so, Q2 Eurozone GDP was slightly better than expected at +0.1% q/q. USD/JPY also stayed steady near 148, while the USD made some ground against the AUD, which dipped 15 pips to tade below 0.65, and the CAD with USD/CAD up 10 pips to 1.3780.
GBP was the strongest currency on the session, with EUR/GBP continuing to decline, dropping 15 pips to 0.8635. EUR/CHF was also 5 pips lower at 0.93. The European Commission monthly confidence survey was a little more upbeat than expected, with industrial confidence rising and the business climate index up slightly on the month, but the survey still looks downbeat on any longer term reading.
Asia session
The Q2 Australian headline CPI came in lower than expected and inch closer to the lower bound of target rate at 2.1% y/y. Trimmed mean CPI also tread lower to 2.7% y/y. It looks like an imminent cut from the RBA is sealed in. The broad risk sentiment looks upbeat with both regional and U.S. three major equity indexes are in the green and see the AUD/USD trading 0.03% higher at 0.6512, NZD/USD is trading 0.14% higher at 0.6511 while USD/CAD slips 0.03%.
Earthquakes above eight magnitude hit the east coast of Russia. Tsunami warning have been issued in multiple countries and across most of Japan's eastern coastline. It is expected waves to be as high as 3.3 metres and over 900k people have been asked to evacuate along the eastern coastline of Japan. USD/JPY is trading 0.36% lower at 147.90. Else, EUR/USD is is up 0.07% and GBP/USD is unchanged.