Europe Summary and Highlights 30 June
EUR/USD was not much changed but USD/JPY was slightly higher, gaining 20 pips to 144.20, and USD/CHF slightly lower, falling 15 pips to 0.7970.
European morning session
EUR/USD was not much changed but USD/JPY was slightly higher, gaining 20 pips to 144.20, and USD/CHF slightly lower, falling 15 pips to 0.7970. GBP, the scandis and the commodity currencies were all a little lower. AUD/USD lost 20 pips to 0.6530, GBP/USD 30 pips to 1.37, USD CAD gained 20 pips to 1.3680, and EUR/NOK and EUR/SEK both gained 4 figures.
Newswise German retail sales data early in the session was much weaker than expected, falling 1.6% m/m, while German state CPI data came in mixed but net weaker than expected with NRW and Bavaria both showing significant declines to 1.8% y/y in June. The national CPI data was expected to see a small increase to 2.2% y/y, but after the state data a small decline looks more likely. Yields were generally slightly lower across the board, so probably not in response to the German data.
UK money data was slightly on the weak side of consensus, with both mortgage lending and consumer credit lower than expected, although mortgage approvals were slightly higher. Italian provisional June CPI was slightly weaker than expected at 1.7% y/y.
Asia session
The USD was generally marginally stronger, with the biggest move coming on USD/CAD, which broke above 1.37 after Trump broke off trade negotiations with Canada citing Canada’s Digital Service Tax, and stated Canada would receive its tariff level in the next seven days. Otherwise, USD gains were modest. USD/JPY gains stalled ahead of 145. EUR/USD found support below 1.17 after an early move above 1.1750. GBP/USD saw a brief move below 1.37 while AUD/USD fell to .6525 from .6550. EUR/GBP/ was firmer peaking above .8550 while EUR/CHF and EUR/SEK largely erased European losses.
May US core PCE prices were marginally stronger than expected but this had little impact with personal income and personal spending both weak at -0.4% and -0.1% respectively. April Canadian GDP fell by 0.1% with a similar decline projected for May but this was not a major factor in CAD slippage.