Europe Summary and Highlights 13 Jan
The USD lost around 0.1% against the EUR and a tad less against GBP but was otherwise little changed in a quiet European morning.
European morning session
The USD lost around 0.1% against the EUR and a tad less against GBP but was otherwise little changed in a quiet European morning. There was little news of any note, with the market awaiting the US CPI data later.
European bond yields moved marginally higher, but there was otherwise very little market movement.
Asia session
We are hearing more jawboning from Japan government spokesperson, warns of “one-sided” sharp FX moves after FM Katayama released a similar rhetoric hours earlier. It is understandable as JPY is once again reaching historical low and fast approaching 2025 high against the USD just below the 159 figure. USD/JPY did not react much to such jawboning and is still trading 0.39% higher at 158.75 with U.S. Treasury yields outperforming JGB yields.
Trump threatens 25% tariff on countries doing business with Iran. While it is a sign of geopolitical tension, the way Trump is dealing with Iran seems he is not seeking the Maduro style intervention for now. U.S. major equities have their toes in the red but regional equities are performing better, especially Nikkei. AUD/USD is trading 0.02% lower at 0.6708, NZD/USD is trading 0.09% higher while USD/CAD slips 0.09%. Else, EUR/USD is down 0.03% and GBP/USD is up 0.05%.