European Summary and Highlights 29 July

European morning session

The USD made ground across the board through the European morning, with GBP/USD seeing the largest decline, falling around 50 pips to 1.2830, while EUR/USD lost 25 pips to 1.0835. Gains against the JPY were slightly smaller, USD/JPY rising around 15 pips to 1.5370, while USD/CAD gained just 5 pips to 1.3830. AUD/USD was little changed at 0.6550. The USD was also little changed against the scandis, with both the NOK and SEK making ground against the EUR.

The SEK initially fell back a little after weaker than expected Swedish GDP data, which fell 0.8% in Q2, following the 0.7% Q1 gain, but this move was more than eversed by the end of the session. UK money data was on the strong side of expectations, with M4 up 0.5% m/m, and both mortgage lending and consumer credit stronger than expected.

Asia session

We are beginning the week with a volatile morning with headlines crossing the wires and see USD opened broadly lower against major. USD/JPY reopened 30 pips lower than Friday close. But as the run to close the opening gap ran too far, USD/JPY is met with fierce offer to trade 160 pips lower. It seems a more hawkish expectations from the BoJ on Wednesday has kept JPY bids alive. Both the U.S. Treasury and JGB yields are lower and see USD/JPY trading 0.19% lower at 153.42.

Over the weekend, Hezbollah is named by Israel to be responsible for rocket attack at Golan Heights which killed twelve. Gold and Oil opened higher as market participants is concerned about escalation in the area. So far it does not seem to affect the equity space as both regional and U.S. three major equity indexes are trading higher. AUD/USD is up 0.09% but have erased most earlier gains, so as NZD/USD which is up 0.03%, while USD/CAD slipped 0.07% as oil almost up a dollar. Else, EUR/USD is up 0.05% and GBP/USD is up 0.07%.