Europe Summary and Highlights 25 February
There was little net change in the USD through the European morning.
European morning session
There was little net change in the USD through the European morning. USD/JPY did fall half a figure in early trading but recovered to be little changed near 149.75 by the end of the session. The only real move was in the AUD, with AUD/USD losing around 25 pips to 0.6325. Otherwise, EUR/CHF was slightly softer and EUR/NOK was slightly firmer, but EUR/USD and GBP/USD were unchanged.
There wasn’t much news of note, with the German Q4 GDP data unrevised at -0.2 q/q and no other data of significance. The UK energy regulator Ofgem said it was raising its price cap on UK household energy bills by 6.4% from April, which could push up UK inflation and limit BoE easing, but there was no GBP impact and UK yields were slightly lower on the session.
Asia session
Regional equities in China opened sharply lower but has since gradually recovered and once inch distance from the opening gap. HSI and Nikkei are also in the red while U.S. three major equity indexes are taking a breather. AUD/USD dipped and recovered to trade 0.05% higher at 0.6351. Trump confirmed that the tariffs on Mexico and Canada set to take effect on March 4 but it does not seem to have a lasting impact on the FX market. NZD/USD is up a pip while USD/CAD slipped 0.05% to 1.4252 as oil gains twenty cents.
The Japanese PPI continues its slow grind higher, indicating more cost pressure to be read in the coming inflation. JGB yields opened lower on Tuesday while U.S. Treasury Yields are also trading lower. USD/JPY has recaptured the 150 handle but soon reversed traction along broad USD weakness to trade 0.12% lower at 149.51. Else, EUR/USD is up 0.06% and GBP/USD is up 0.09%.