Europe Summary and Highlights 4 July
A quiet session saw GBP move slightly lower, with EUR/GBP gaining 10 pips to 0.8625.
European morning session
A quiet session saw GBP move slightly lower, with EUR/GBP gaining 10 pips to 0.8625. AUD and CAD were also lower, losing around 0.2% against the USD as equity markets edged lower. Otherwise NOK/SEK fell back 30 pips to 0.9480, but EUR/USD and USD/JPY were little changed.
German orders data for May came in weaker than expected at -1.4% m/m, but the April data was revised up to +1.6% so the underlying trend was little changed. Eurozone PPI fell 0.6% m/m as expected in May. There wasn’t a great deal else to report
Asia session
The May Japan household spending came in strong at 4.7%, the strongest level seen in the past few years. It would be a welcoming sign for the BoJ to hike rates as consumption has been restrained by negative real wage lately. USD/JPY is trading 0.39% lower at 144.34.
Market sentiment calms after the post NFP boost as Trump said he will begin to send tariff letters to other countries. However, he has given other countries almost another month for negotiations, as tariff payment begins on first of August. Major equity indexes are toes in the red and see AUD/USD trading unchanged, NZD/USD is trading 0.04% higher at 0.6072 while USD/CAD slips 0.07%. Else, EUR/ISD is up 0.2% and GBP/USD is up 0.15%.