Europe Summary and Highlights 6 Jul
USD/JPY creeping back into recent top with US holiday cleared
European morning session
USD/JPY keeps nudging further back up having cleared the US holiday without incident and no further market-self-induced spooks yet. Recovery high now 162.30~ so back into last week’s top area. NZD in some pre-event profit-taking/trimming, after recent recovery into RBNZ
Otherwise relatively quiet. Oil off around ½ % after OPEC’s latest increase, Brent front month still sitting just off the $70 next big figure base.
May industrial orders 1.9% m/m (mkt +1.5%) from -3.8%.
The EZ July Sentix -3.1 (mkt -10.0) expected from -13.4
EZ construction PMI 42.8 from 43.7
Asia Session
While OPEC+ confirmed a fifth straight monthly output increase, the complication regarding Strait of Hormuz continues to weigh on oil. Weekend headlines confirm Iran's heightened control of the Strait and keep major equity indexes low. AUD/USD is trading 0.11% lower at 0.6933 on softer precious metal. NZD/USD is trading 0.41% lower while USD/CAD rises 0.05% on lower oil.
The greenback is solid on Monday with geopolitical uncertainty persists. It is by no means a full blown risk aversion USD buying but should keep USD bids alive in coming session. USD/JPY is grinding closer to 162 to trade 0.37% higher at 161.93. Else, EUR/USD is unchanged and GBP/USD is down 0.08%.