Europe Summary and Highlights 10 October
The USD was mixed in the European morning, losing some ground against the JPY but gaining slightly against the EUR. USD/JPY fell from 149.20 to 148.90, while EUR/ISD slipped from 1.0940 to 1.0930.
European morning session
The USD was mixed in the European morning, losing some ground against the JPY but gaining slightly against the EUR. USD/JPY fell from 149.20 to 148.90, while EUR/ISD slipped from 1.0940 to 1.0930. USD/CAD rose 20 pips to 1.3730, and EUR/CHF lost 10 pips to 0.9400. AUD/USD also fell back slightly but GBP/USD was little changed.
The main data during the morning was the Norwegian September CPI data, which was weaker than expected with the headline rising less than expected to 3.0% y/y and the core falling slightly to 3.1% y/y. However, there was minimal impact on the NOK, with EUR/NOK initially rising slightly but finishing the morning little changed at 11.78. Swedish August GDP rose a strong 1.1% after a 0.9% drop in July, but the volatility of these numbers limits their impact. German retail sales showed the second consecutive solid m/m gain in August, rising 1.6%, but the underlying trend remains quite flat.
Asian session
The Japan September PPI has come in higher at 0.0% m/m and +2.8% y/y. It would be a positive sign for the BoJ as they are looking for stronger trend inflation. On Thursday's Asia session, U.S. Treasury Yields have so far retreated more than JGB yields. USD/JPY is trading 0.03% lower at 149.25.
The Australian consumer inflation expectation slipped to 4% from 4.4% in October. It confirms our forecast to see gradual moderation for Australia inflation for the rest of 2024. Regional sentiment is vibrant on Thursday as market participants cheers on more stimulus expectation from the Chinese government. PBoC announced they will be establishing securities, funds to aid capital market stability, indirectly increasing liquidity in the market. The HSI is up 4% and Chinese equity indexes are up almost 3%. AUD/USD rose 0.19% to 0.6731, NZD/USD is up 0.36% to 0.6086 while USD/CAD slipped 0.02%. Else, EUR/USD and GBP/USD are up 0.04%.