Europe Summary and Highlights 13 September

European morning session

The USD extended overnight losses in the European morning after staging a modest initial rally. EUR/USD opened around 1.1085 and dropped to 1.1075 but rallied to test 1.11 buy the end of the morning. USD/JPY similarly initially rose from 141.00 to 141.40 but dropped sharply from there and was trading at 140.40 by the end of the session. Other currencies broadly moved in line with the EUR but the scandis outperformed with EUR/NOK and EUR/SEK dropping 2 and 3 figures respectively, while AUD and CAD lagged slightly.

There wasn’t a great deal of news. Data wise French August CPI was revised down slightly to 0.5% m/m from 0.6%, although on an HICP basis the data as unrevised at 0.6%. Eurozone industrial production was a little less weak than expected at -0.3% m/m in July.

Asia Session

As U.S. Treasury Yields slip across the curve, the USD/JPY take a quick test to yearly low at 140.65 before rebounding to sub 141 level currently. There is little impetus form the Japan end, the move seems to be triggered by market participants anticipating of the September FOMC cut. USD/JPY is trading 0.52% lower at 141.05 with the minor rebound fueled JGB yields also sliding.

Broad sentiment is mixed on Friday with HSI and U.S. three major equity indexes in the green while other regional indexes in the red. The USD is trading lower against major and seems to be supporting the Aussie. The AUD/USD is trading 0.04% higher at 0.6726, NZD/USD is unchanged at 0.6183 while USD/CAD slips 0.02%. Else, EUR/USD is up 0.1% and GBP/USD is up 0.16%.