Europe Summary and Highlights 12 November
The USD continued to make gains across the board through the European morning.
European morning session
The USD continued to make gains across the board through the European morning. EUR/USD made another new post April low at 1.0611, with the low for the year at 1.0601 in focus. The EUR weakness was helped by a weaker than expected ZEW survey, which saw declines in both the sentiment and the current conditions index, with the current conditions index at its lowest since the pandemic. USD/JPY advanced above 154, threatening the post-election highs.
GBP slightly outperformed the EUR, with EUR/GBP dropping to 0.8285 from an open above 0.8290. The main news of the morning was the UK labour market data. This was mixed, with the unemployment rate rising unexpectedly to 4.3%, but average earnings growth coming in higher than expected. EUR/GBP initially edged up after the data but fell back by the end of the session.
North America session
With the partial holiday for Veterans’ Day seeing bond markets closed there was little movement in North America. EUR/USD was stable near 1.065 and USD/JPY stable near 153.75. The EUR made marginal corrections from European losses versus GBP and CHF. AUD/USD saw modest loses to .6570, underperforming USD/CAD which found sellers at 1.3950.