Europe Summary and Highlights 25 September
A quiet European session saw no significant change in any of the G10 currencies.
European morning session
A quiet European session saw no significant change in any of the G10 currencies. The main event was the SNB monetary policy meeting, but this produced the expected unchanged policy. The SNB now sees 2026 GDP growth at the lower end of the 1%-1.5% range it offered three months ago. While still pointing to possible FX intervention and a continued willingness to adjust policy accordingly, the statement was (probably deliberately) vague about both taking rates below zero and what the consequences would be. EUR/CHF saw a minor dip on the initial reaction to the decision, but finished the session marginally higher.
Otherwise, the Eurozone money supply data saw weaker than expected M3 growth but slightly stronger loan growth, neither of which were significant enough to impact the EUR.
Asia session
Ex-BoJ member Makoto Sakura Says The BOJ may act in October. He is not the first ex board member to say so and echoes our call for an October hike. USD/JPY is trading 0.16% lower at 148.66 with JGB outperform U.S. Treasury yields.
There seems to be little decisiveness in the broad equity market on Thursday as major equity indexes are ending the Asia session close to unchanged. Nikkei and HSI is leading while Chinese equity indexes lags but both with a small magnitude. AUD/USD is trading 0.13% higher at 0.6519, NZD/USD is trading 0.12% higher at 0.5820 while USD/CAD is unchanged. Else, EUR/USD is up 0.05% and GBP/USD is up 0.07%.