Europe Summary and Highlights 10 February
The USD generally traded slightly softer through a quiet European morning, with EURUSD gaining around 10 pips to 1.0330 and similar gains in other riskier currencies, while USD/JPY was not much changed just above 152 after trading higher early in the session.
European morning session
The USD generally traded slightly softer through a quiet European morning, with EURUSD gaining around 10 pips to 1.0330 and similar gains in other riskier currencies, while USD/JPY was not much changed just above 152 after trading higher early in the session.
The only news of note was out of Scandinavia, with Norwegian January CPI coming in slightly above consensus at 2.3% headline, 2.8% core, while Swedish December production and orders data was also stronger than expected, rising 9.0% and 5.8% y/y respectively. Both NOK and SEK gained ground, with EUR/SEK and EUR/NOK dropping around 3 figures to 11.27 and 11.58 respectively.
Asia session
The weekend tariff talk from Trump has caught market's attention and see risky currency opened lower. The market recovered quickly as participants are getting used to tariff man's approach and such tariff was partially previewed on late Friday Nevertheless, USD is still outperforming majors in the Asia session on Monday, only AUD/USD, NZD/USD, GBP/USD and USD/JPY once closed the gap. On the other hand, the steady rise in JGB yields have led 10yr JGB yields to be the highest in more than a decade. Yet, the ebbs and flow of market has been taking the driver seat and see USD/JPY rose 0.39% to 151.97.
The 25% universal tariff on steel and aluminum from Trump scared the market initially. As session progress, we all major equity indexes back in the green with HSI leading at over 1% gain despite China floating the idea of tariff retaliation. AUD/USD is up 0.03% to 0.6274, NZD/USD is down 0.02% at 0.5658 while USD/CAD rose 0.33%. Else, EUR/USD is down 0.08% and GBP/USD is up 0.03%.