Europe Summary and Highlights 12 Aug
Sideways run into the key US CPI data
Gold and silver continue their breaks higher however
AUD/NZD has a bit of a pop on the 1.2 clearance
Europe
Another quiet one, as the run in to the key US CPI data continues. Still choppy on oil on and around $90 amid still scattered incidents and no obvious change in the Iran stance.
Amid the quiet, gold and silver still one of the stand outs up 1% and 2 ½ % respectively, continuing the base breakout rally we suggested could be in the works some while back Still has potential as a theme in the current environment.
Some technical driven upside on AUD/NZD above 1.2 the only recent action of note. 1.21 is the higher chart level on that cross.
Recent sideways summer action belies potential for some decent relative moves out of the data given that it is both high priority and the market is still overall long dollar positioned into it.
Asia Session
JGB yields continue to rally, especially short end, on rising BoJ rate hike expectations. Some market participants may attribute such move from high energy price but they have likely misjudged how BoJ prefer their rate hikes. USD/JPY is still trading 0.10% higher at 159.41 as the BoJ hasn't committed to earlier rate hike yet.
Major equity indexes are performing individually as market participants are undecided about what to expect in the Middle East. Wishful thinkers will likely be left disappointed as no deal has surfaced so far. AUD/USD is trading 0.08% lower at 0.705. NZD/USD is trading 0.24% while USD/CAD rises 0.05%. Else, EUR/USD is down 0.05% and GBP/USD is down 0.02%.