Europe Summary and Highlights 14 October
USD/JPY gained 20 pips to 149.40 in the European morning, while EUR/USD was slightly firmer at 1.0930, with EUR/GBP also gaining slightly to move above 0.8370.
European morning session
USD/JPY gained 20 pips to 149.40 in the European morning, while EUR/USD was slightly firmer at 1.0930, with EUR/GBP also gaining slightly to move above 0.8370. Commodity currencies were weaker, with AUD/USD losing 15 pips to 0.6725 and USD/CAD gaining 20 pips to 1.3795. EUR/CHF gained20 pips to touch 0.94.
There was no news of any real note, with the only data being Swiss PPI, which fell 0.1% in September.
Asian session
Over the weekend, there was a lack of extra stimulus from the Chinese government and it led to a slow start in regional sentiment. Yet, market participants are hoping for more stimulus by the late October NPC meeting and see a bounce back in regional equities. The AUD/USD initially dipped to 0.6722 before rebounding to 0.6737.
New Zealand retail sales continue to contract and service PMI for September remains in contraction at 45.7. This aligns with RBNZ’s view of soft NZ economy and supports the current trajectory. NZD/USD is trading lower at 0.6092.
Japanese Prime Minister Ishiba says will not intervene in BOJ monetary policy. It came after earlier report in the past two weeks, which he does not seem supportive towards the BoJ’s decision of further tightening in a short period of time. USD/JPY is trading higher at 149.32. Else, EUR/USD is trading at 1.0924 and GBP/USD is trading at 1.3059 both bounced off session low while USD /CAD trades higher at 1.3776.