Europe Summary and Highlights 17 October

European morning session

EUR/USD fell back 20 pips through the European morning to trade below 1.17, and the riskier currencies were generally slightly softer against the USD, while USD/JPY and USD/CHF were net little changed after dropping in early trading. Equity futures net slightly extended the declines seen overnight, but recovered back to close to opening levels after an initial dip.

There was little news of note with just final September Eurozone CPI on the data front, which showed an unchanged headline rate of 2.2% but a slightly upwards revision n the core y/y rate to 2.4%, with the m/m rate unchanged at 0.1%. The movements in markets were responses to the overnight news on US bank problems rather than any European developments. 

Asia session

Broad risk sentiment is sour on Friday as we see major equity indexes in the red, led by regional equities. Major commodities are also seen lower so far in the session. It seems to be market participants positioning themselves before the weekend after a volatile week. AUD/USD is trading 0.25% lower at 0.6468, NZD/USD is trading 0.14% lower at 0.5732 while USD/CAD slips 0.09%.

There seems to be more political turbulence for Japan by the end of week as we hear the Japan LDP and opposition CDP agreeing to hold vote to decide next prime minister on Oct 21. It seems to be gaining more traction that Taikachi may not be the next Japan prime minister and we see JPY continue to be supported. USD/JPY is trading 0.22% lower at 150.08. Else, EUR/USD is up 0.17% and GBP/USD is up 0.11%.