Europe Summary and Highlights 3 July
The USD was little changed in a quiet European morning.
European morning session
The USD was little changed in a quiet European morning. GBP made a modest recovery after yesterdays losses, helped by PM Starmer saying Chancellor Reeves was doing an excellent job, undermining speculation that she would be sacked or would resign. GBP was also helped by an upward revision in UK June PMI to 52.0 from 50.7, due to an upward revision in services. Eurozone PMI was also revised higher, albeit more modestly.
Swiss CPI came in above the 0.1% consensus at 0.2% m/m in June and EUR/CHF initially dipped to a low of 0.9322 before rebounding above opening levels to 0.9345
Asia session
It is a rangebound session for major FX pairs as market participants quietly wait for US NFP data. However, the antipodeans seems to be dragged by soft regional sentiment and slightly stronger USD. The Australian trade balance missed but is mostly affected by recovery in import and thus shouldn’t affect the coming RBA decision to cut. AUD/USD is trading 0.28% lower at 0.6565, NZD/USD is 0.34% lower at 0.6068 while USD/CAD rise 0.04%.
The optimism of trade deals continue to support global market on Thursday’s Asia. Vietnam has been reported to have a deal with India closing by, yet there seems to be little progress with Japan. Auto tariffs remains a huge obstacle for an agreement to be reached. USD/JPY is trading 0.17% higher at 143.88. Else, EUR/USD is down 0.08% and GBP/USD is down 0.04%.