European Summary and Highlights 14 May
GBP gained in early trade after UK labour market data showed a stronger than expected rise in average earnings, both on the official oNS measure and the more up to date HMRC measure.
European morning session
GBP gained in early trade after UK labour market data showed a stronger than expected rise in average earnings, both on the official oNS measure and the more up to date HMRC measure. While other aspects of the data were less strong, with employment and vacancies both falling again, the pound only fell back after comments from BoE chief economist Huw Pill, who said that is was “not unreasonable” to consider rate cuts in the summer. EUR/GBP finished the session around 15 pips higher at 0.8605.
Otherwise there was the German ZEW survey, which was stronger than expected in May, helping EUR/USD to make small gains, edging above 1.0790. USD/JPY was also slightly lower at 156.30 after opening at 156.45, while AUD/USD also gained 10 pips to 0.6610.
Asia session
USD/JPY continue its grind higher to middle 156, slow and steady this time. We have the daily verbal intervention from Suzuki but now it seems USD/JPY is moving in a "stable manner" already and does not have any impact in curbing the grind of USD/JPY. 10yr JGB yields are marching towards 1% while U.S. Treasury Yields slips. USD/JPY is trading 0.12% higher at 156.38.
USD is trading broadly stronger on Tuesday's Asia session. Regional risk sentiment is weak while U.S. three major equity indexes are performing mixed. AUD/USD is beaten by 0.14% to trade lower at 0.6598, NZD/USD also slipped 0.07% to 0.6013 while USD/CAD rose 0.1%. Else, EUR/USD and GBP/USD are down 0.04%.