European Summary and Highlights 11 July
The USD was generally a little weaker through the European morning, losing around 0.1% across the board.
European morning session
The USD was generally a little weaker through the European morning, losing around 0.1% across the board. GBP was slightly the best performer, with EUR/GBP dipping to a low just above 0.8420 after this morning’s stronger than expected May GDP data. This showed a 0.4% rise against a market consensus of 0.2%, due to strength in services and construction. However, the GBP gains against the EUR were quite small, only slightly extending yesterday’s gains after the comments from BoE chief economist Pill.
The big mover through the morning was EUR/NOK, which gained 10 figures to 11.70, without any obvious cause beyond an extension of the upmove seen yesterday following the weaker than expected Norwegian June CPI data.
Asia session
Regional sentiment is optimistic with HSI leading and Nikkei almost up one percent. U.S. three major equity indexes are little changed as market participants waiting for the U.S. CPI to determine the next leg. The USD is broadly weaker against majors and the Antipodeans are capitalizing on that. AUD/USD is up 0.15% to 0.6758 with consumer inflation expectations remain above 4% at 4.3%. NZD/USD gained more by 0.24% to 0.6097 while USD/CAD rose 0.02%.
Both the U.S. Treasury and JGB yields are little changed. USD/JPY is up 2 pips on 161.69 Else, EUR/USD is up 0.06% and GBP/USD is up 0.07%.