Europe Summary and Highlights 18 December
European currencies dropped back through the European morning, with EUR/USD losing 20 pips to 1.1725.
European morning session
European currencies dropped back through the European morning, with EUR/USD losing 20 pips to 1.1725. Most of the other European currencies were dragged a little lower against the USD too, but the EUR was generally a little weaker.
EUR/NOK spiked above 12 just before the Norges Bank decision to leave rates unchanged (as expected), but subsequently fell back to 11.95 leaving the NOK little changed against the USD on the morning. EUR/SEK was little changed after the Riksbank also left rates unchanged as expected. The JPY, CHF and commodity currencies were little changed against the USD.
The other significant data for the morning was the French INSEE business survey, which showed a surprise rise to its highest since March 2024.
Asia session
The Q3 New Zealand GDP has reverted to growth at 1.3% y/y and 1.1% q/q from a contracting Q2. While the Kiwi initially got a few pips higher on the release from quarterly beat, the as expected y/y and RBNZ's dovishness brings them back to reality. NZD/USD is trading 0.11% lower at 0.5767, the AUD/USD is unchanged while USD/CAD slips 0.06%.
As USD/JPY lingers around recent high, we are hearing Japan Chief Cabinet Secretary Kihara saying the government is closely watching market developments. And once again, such jawboning is fruitless with all eyes on BoJ decision on Friday. USD/JPY is trading 0.06% higher at 155.73. Else, EUR/USD is up 0.03% and GBP/USD is down 0.03%.