Europe Summary and Highlights 30 July
Mkt still digesting FOMC, EUR/USD holds bounce after backfilling, helped by EZ data
Europe
Eurozone data this morning coming in largely on the upside of expectations on both sides of the equation. EZ Q2 GDP at 0.4%q/q vs mkt 0.2%, picking up to 1%y/y (mkt 0.5%). Business investment as with the US, an upside influence.
Spain flash Jul HICP at 3.8% from 3.6% (mkt 3.7%), and German state CPI figures suggesting that the national figure later will probably come in at least 2.7% from 2.3% previously, as expected.
EUR/USD had a bit of minor early backfilling of the post-FOMC dollar sell move, but is back to flat and now not far off the highs and key next key resistance (1.1487/1.15)
Sterling broadly flat too into the BoE.
NZD/USD an outperformer post FOMC, with strong rebound in ANZ business outlook also helpful.
Nasdaq around +0.8%, taking back some of yesterday’s losses. Brent pretty flat after initially higher after the US followed through with Trump’s threats to retaliate. Monday’s gap holds the high.
Asia Session
It is reported that Trump is weighing another two-week campaign of strikes against Iran, after a confirmed U.S. strike on multiple IRGC military target. As previewed, the full scale missile exchange will begin soon. U.S. equities are outperforming regional ones and see AUD/USD trading 0.1% lower at 0.6947. NZD/USD is trading 0.06% higher, so as USD/CAD with oil up more than a dollar/b.
Else, the aftermaths of FOMC sees USD/JPY at 163.61, EUR/USD down 0.16% and GBP/USD down 0.23%.