Europe Summary and Highlights 7 Sep

Europe

With the US out for Labor Day today, a couple of notable moves in the European morning.

Swedish CPI comes in below market expectations after some recent upsides, CPIF flash holding to 0.7%y/y vs market 1%, while ex energy dips to 0.5% from 0.6% vs market 0.8%. Data supports the notion that the Riksbank has ‘scope to wait before adjusting monetary policy’ and EUR/SEK, NOK/SEK manage a pop on the release. Both do have overhead resistance though run into again after o/b runs.

USD/JPY is the other highlight, taking out the155.20-00 support from last week, accelerating down to the next 154~ larger support area before bouncing off that level. Obviously also somewhat oversold too and with key US data coming up, but reinforced impression that there is supply and position shifts in play.

Asia Session

The regional sentiment is strong on the tech/A.I. front where we are seeing KOSPI leading with almost 4% gain with Nikkei also up more than 2%. U.S. Nasdaq is also in the green. AUD/USD is dragged by performance of precious metals to trade 0.02% lower at 0.7205 after opening a few pips lower. NZD/USD is trading 0.11% lower while USD/CAD is unchanged with oil up a USD/b.

Major FX market is rangebound despite opening gap over the weekend geopolitical tension, partially due to the coming U.S. holiday. JGB yields are seeing some rebound across the curve with similar magnitude. USD/JPY is hovering around at figure at 156.06, down 0.09% for the session so far. Else, EUR/USD and GBP/USD are down 0.03%.