Europe Summary and Highlights 9 May

European morning session

The USD was a little softer against the EUR and JPY through the European morning, EUR/USD gaining 20 pips to 1.1245 and USD/JPY losing 20 pips to 145.25. GBP was the best performer, with GBP/USD up 30 pips to 1.3270. The CHF underperformed, with EUR/CHF gaining 20 pips to 0.9355. AUD and CAD were little changed.

EUR/NOK was slightly softer at 11.68 despite weaker than expected Norwegian CPI data which saw the core rate drop to 3.0% y/y in April, below the 3.2% consensus.

Asian session

The broader risk asset market is choppy on Friday. Some follow through selling momentum dominated in early Asia but as session progress and supportive headlines from China surface, the overall risk mood improves. Apart from property market supporting measures, the Chinese January to April export is not as bad as some anticipates due to tariff impact.  AUD/USD is trading 0.1% higher at 0.6406 after a session low of 0.6371, NZD/USD is still down 0.14% at 0.59897 while USD/CAD slips 0.05%.

The March Japan labor cash earning continues to grow above 2% at 2.1% y/y but has slowed from the previous sub 3% level. While it is before the 2025 spring wage negotiation, the uncertainty from potential tariffs may have deterred the pace of wage hike in Japan. On the other hand, we have a recovery in household spending to 2.1% y/y, suggesting consumption is set to further recover. USD/JPY is trading 0.27% lower at 145.5 with JGB outperform U.S. Treasury Yields. Else, EUR/USD 0.04% and GBP/USD is down 0.07%.