Europe Summary and Highlights 11 Aug
Quiet European morning, oil prices still drifting out higher with US frustrations with no-win options
Europe
A quiet European morning, with little action, outside of oil where prices continue to leak out higher. The market rightly grows more uneasy about the lack of deal progress and the rhetorical and political bashing of heads, made clear by Trump’s latest comments. There’s still not a clean path through the current situation to a US exit ramp. Brent front month +$2 to around $90~. Little FX action other than token SEK a touch weaker, NOK a toucher firmer.
Asia Session
RBA kept cash rate unchanged at 4.35% in the August meeting. The hawks are left disappointed as forward guidance remain similar with inflation expectation likely revised higher. While upside risk is highlighted, it is likely just a gesture. AUD/USD is trading 0.16% lower at 0.7042. NZD/USD is trading 0.12% while USD/CAD is down 0.09% with oil trading individually.
Jiji reported that the BoJ may consider an additional rate hike at its September 17-18 meeting. It seems to be bolder than most market participants' anticipation of an October hike. USD/JPY is trading 0.06% lower at 159.17 after testing a session low at 158.93. Else, EUR/USD is up 0.01% and GBP/USD is up 0.05%.