Europe Summary and Highlights 6 November
The USD saw some modest losses against GBP and the JPY through the European morning, with the scandis also making gains, while most other pairs were little changed.
European morning session
The USD saw some modest losses against GBP and the JPY through the European morning, with the scandis also making gains, while most other pairs were little changed.
The SEK benefited from slightly higher than expected Swedish preliminary October CPI data, which was unchanged from September at 3.1% y/y, sending EUR/SEK a couple of figures lower to 10.98. The NOK gained after Norges Bank left rates and their guidance unchanged at the Norges Bank meeting, with EUR/NOK falling 3 figure to 11.71. There were no obvious triggers for the modest GBP and JPY gains of around 0.1%. The other data for the morning was German industrial production, which rose less than expected at 1.3% m/m in September after the sharp 3.7% decline in August, but had little impact as the underlying trend appears fairly steady.
Asia session
Despite September labor cash earnings rose 1.9% for Japan, a rebound from 1.4% in August, it remains below 2%. Real wage stays in negative territory as headline inflation lingers around 3%. Such may affect consumption behaviour in the coming quarter. USD/JPY is trading 0.15% lower at 153.85.
Regional sentiment is performing better than U.S. major equities. It seems to be related to the report that China made purchases of two cargoes of US wheat for December shipment while banning foreign AI chips in local data centre. AUD/USD is trading 0.07% higher at 0.6511, NZD/USD is trading unchanged while USD/CAD is down 0.05%. Else, EUR/USD is up 0.16% and GBP/USD is up 0.09%.