Europe Summary and Highlights 19 November
JPY weakness was the main feature of the European morning.
European morning session
JPY weakness was the main feature of the European morning. USD/JPY rose 65 pips to 156.15, its highest since January, after Finance minister Katayama failed to protest JPY weakness at her press conference following her meeting with BoJ governor Ueda. The CHF kept pace with JPY weakness, with EUR/CHF gaining 20 pips to 0.9290, as the USD also made modest gains across the board, with EUR/USD losing 15 pips to 1.1570
GBP also fell back, with EUR/GBP gaining 10 pips to 0.8825 helped by marginally softer than expected UK October CPI data. Although y/y CPI rates are as expected, the core m/m gain of 0.3% was slightly blow the 0.4% consensus, and services inflation was weaker than expected at 4.5% y/y.
Asia session
The Australia Q3 Wage Price Index bangs in estimate at 0.8% q/q and 3.4% y/y. The data is also in the ball park of RBA's forecast, thus should not see a significant deviation in rate forecast. However, as the session progress, the Aussie seems to be following the souring sentiment in the risk space and see AUD/USD trading 0.42% lower at 0.6480, NZD/USD also 0.45% lower at 0.5623 while USD/CAD rises 0.05%.
China continues to exert pressure on Japan after PM Takaichi voiced support for Taiwan. The latest measure is by renewing a ban on Japanese seafood imports, after travel ban and cut film release. USD/JPY is trading 0.05% at 155.37 as JGB outpace U.S. Treasury Yields. Else, EUR/USD is up 0.05% and GBP/USD is down 0.02%.