Europe Summary and Highlights 12 September

European morning session

EUR/USD, GBP/USD, USD/CAD and USD/JPY were all little changed through the European morning, but the AUD slipped back around 15 pips to 0.6675 and EUR/CHF extended overnight gains to trade around 20 pips higher at 0.9415. Scandis were firm, with EUR/SEK and EUR/NOK both losing around 2 figures.

News was thin on the ground, with Swedish CPI the only significant data. This was weaker than expected, with headline dipping to 1.9% y/y and core at 1.2% against consensus estimates of 2.1% and 1.3% respectively. But the weaker data didn’t undermine the SEK which gained ground against the EUR.

Asia Session

The Japan August PPI came in at -0.2% m/m, lower than expected at +0.0% and +2.5% y/y, lower than expected +2.8%. It paints a dire picture for the BoJ with input inflation flying below consensus. But that doesn't stop BOJ's Tamura saying he expects a gradual path for interest rate hikes. He highlighted the neutral rate is likely to be 1% at least. USD/JPY initially dipped to 142.22 before rebounding to trade 0.3% higher at 142.77 with both the U.S. Treasury and JGB yields rising.

The Melbourne Institute Survey of Consumer Inflationary Expectations for Australia has come in at +4.4%y/y in September. It is a slight moderation from 4.5% in August but still way above RBA's 3% target. Regional sentiment is mostly positive,  along with U.S. three major equity indexes all in the green. AUD/USD is trading 0.24% higher at 0.6690, NZD/USD also 0.23% higher at 0.6151 while USD/CAD slips 0.03%. Else, EUR/USD is up 0.04% and GBP/USD is up 0.05%.