Europe Summary and Highlights 11 November

European morning session

The USD made general gains through the European morning. The EUR, CHF and scandis saw the largest declines, falling by around 0.3%, while the JPY lost 0.2%. GBP, AUD and CAD were only marginally lower.

There wasn’t a great deal of relevant news in the European morning. Data was limited to Norwegian October CPI which was only very marginally weaker than expected at 0.2% m/m, with the y/y rates in line with consensus. The USD’s strength looks to be related to expectations of US tariffs being imposed along with domestic tax cuts, which is seen as negative for China and the Eurozone in particular.

Asian session

While there is little news from the BoJ's October Summary of Opinion, market participants seem to have focused on the division of future rate hike timing, rather than the highlight on weak JPY impact. USD is performing broadly stronger against major with the front end of U.S. Treasury Yields outperforming the far end but gains have dissipated against the Antipodeans. USD/JPY is trading 0.65% higher at 153.55.

The weaker than expected Chinese October CPI points toward softer consumer demand. Regional equities opened lower from that weekend headline and was double teamed by the U.S. Department of Commerce’s letter to TSMC on export restrictions to China. As session progress, most losses in Chinese equity indexes were once erased while HSI remain in the red. AUD/USD is up 0.18% to 0.659, NZD/USD is 0.14% higher at 0.5976 while USD/CAD is up 0.12% on oil down half a dollar. Else EUR/USD and GBP/USD are down 0.03%. Most major pairs opened individually from the Friday close but has since closed the gap at least once in the session.