Europe Summary and Highlights 25 Aug
Oil drifts further off highs, as status quo continues
Improvement in German data
Europe
In an otherwise subdued morning, oil prices continuing to slip off recent highs, Brent front month around -$3 back below $90, having rolled over after filling the gap into $95 at the close of last week. Market tending to take a slightly glass half full view of sanctions (not seen terribly stringent), alongside recent reporting on oil slipping through, as less acute than other escalation, even if entrenched. At least, that is, until/unless Iran does retaliate as threatened.
That is seeing NOK also roll over after its strong run, off around ½ %. CAD interestingly fairly stable after the initial modest reaction to the weekend trade news.
German data better than expected. August IFO business climate 88.8 from 86.6 vs mkt 87.2. German Q2 GDP revised to 0.3% from 0.2%, 1%y/y from 0.9%.
Asia Session
USD/JPY remain in consolidation phase as market participants quietly wait for "leaks" from the BoJ on their September hike. If there are headlines surfacing soon on a hold on September, the risk of JPY being offered strongly will materialize, given the current pricing of September hike. USD/JPY is trading 0.1% higher at 159.23 with both the U.S. and Japan yields higher.
The broader risk sentiment remains choppy on Middle East's drag with major equity indexes performing individually.