Europe Summary and Highlights 11 Sep
Oil pulls back from yesterday's surge, bonds hold just off the big yield highs
US CPI the major focus for the US session
UK GDP surprises to the upside - only minor reaction, though keeps EUR/GBP capped
Europe
FX holding pretty mixed to steady ahead of the much-awaited US CPI release. EUR/USD holds around the 1.16~ anchor with a marginal downside lean into the data. Options not that heavy today with a slight downside skew, largely expiries focused on 1.1575. USD/JPY still consolidating in the 154-154 ½ area after the recent oversold fast decline waiting for the next short-term impetus.
UK GDP data shows an upside surprise at 0.4%m/m. vs market expectations of flat in July to lift the y/y rate to 1.6%, bolstered by services. Relatively minor GBP reaction but it helps keep the current EUR/GBP range top capping in place, the cross lent back from 0.86/0.8620.
NOK continues to see a little profit taking after a sustained run from Jun-Sep down to its various pair/NOK lows.
Oil prices today seeing some correction after yesterday’s high volume surges, Brent front month $100/102-top break to near $110 leap yesterday pulled back to around $104.
Bonds also seeing some minor pullback from yesterday’s yield surges with US10s back from 4.98%~, back to 4.94%, if clearly poised for the next US data release to see if it can fully tag and test the big 4.5% level.