Europe Summary and Highlights 16 December
GBP made some gains through the European morning, benefiting from a slightly less weak than expected labour market report for the 3 months to October.
European morning session
GBP made some gains through the European morning, benefiting from a slightly less weak than expected labour market report for the 3 months to October. However, the more up to date November HMRC data suggested more significant weakness is in the pipeline. GBP subsequently benefited from a rise in the UK December composite PMI, while the EUR lost ground as the Eurozone PMI dipped. EUR/GBP was down 20 pips on the morning to 0.8770, with GBP/USD gaining 40 pips to 1.3410.
EUR/USD was net slightly firmer on the morning despite a dip following the weaker than expected German PMI, and the USD also edged a touch lower against the JPY. The USD was not much changed against the commodity currencies, while the EUR was modestly stronger against the scandis.
Asia session
The sell off in equities continues on Tuesday as we see major equity indexes all heads south. Tech stocks lead the losses as risk off sentiment gain further momentum. JPY is gaining as market participants seek haven and see USD/JPY trading 0.33% lower at 154.7 with both U.S. Treasury and JGB yields fall.
As the session progress, risk sentiment remains poor even after a minor rebound from session low. The Aussie sunk along the broader risk sentiment. However, certain large firms tilt in RBA rate pricing in favor of a February hike seems to have breathed an air of life for it. AUD/USD is trading 0.01% lower at 0.6640 after touching a se session low of 0.6618, NZD/USD is trading 0.08% lower while USD/CAD is unchanged. Else, EUR/USD is down 0.02% and GBP/USD is down 0.05%.